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Home My WebLink AboutWK - May 25, 20211685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, May 25, 2021 City Hall — Senior Center 1. Call to Order— 6:00 p.m. 2. Discuss Multi -Family at Bunker Lake Blvd. and 70' Avenue - Planning 3. CIP Discussion/Streets — Engineering 4. Discuss Advanced Metering Infrastructure (AMI)/21-18 — Engineering 5. Comprehensive Plan Text Amendment Discussion —Planning 6. Community Center April 2021 Update - Administration 7. 2022 Budget Development Discussion - Administration Other Topics 9. Adjournment Some members of the Andover City Council may participate in the May 25, 2021 Special City Council meeting by telephone or video conference rather than by being personally present at the City Council's regular meeting place at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MN 55304. City Staff will be present at City Hall/Senior Center for the meeting. Members of the public can physically attend, although there is very limited seating in the Andover Senior Center as appropriate social distancing will be done by the City Staff and visitors. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER MINNESOTA 55304 TO: CC: FROM: SUBJECT: DATE: FAX (763) 755-8923 . WWW.ANDOVERMN.GOV Mayor and Council Members Jim Dickinson, City Administrato Joe Janish, Community Development Director . (763) 755-5100 Discuss Multi -Family at Bunker Lake Blvd. and 7th Avenue - Planning May 25, 2021 ACTION REQUESTED Consider discussion related to Multi -Family at Bunker Lake Blvd. and 7th Avenue. UPDATE Quest Development has been working to secure residential developers for the property located at Bunker Lake Blvd. and 7th Avenue NW. On November 24, 2020 Della Kolpin Partner with NextNest, LLC. and Kyle Didier Partner at NextNest, LLC. provided a presentation related to a potential concept they had for a multifamily development at the property on the North side of Bunker Lake Blvd. Since that meeting, Della and her team have continued to make adjustments to the sketch. Della and her team would like to present an option or two to obtain feedback once again prior to submittal for formal review. ACTION REQUIRED Staff recommends the City Council provide comments to Della and her team. 7Jams mitted, Community Development Director ATTACHMENTS: Map of General Area Workshop Meeting Minutes November 24, 2020 IA ,� � - • Anoka High - Crhnnl Map of General Area .1102h ' - •. � 5--��11484 1 t41tt � .- _ 1 r ANDOVER CITY COUNCIL WORKSHOP MEETING —NOVEMBER 24, 2020 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Julie Trude, November 24, 2020 at 6:00 p.m., at the Andover City Hall Senior Center, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present remotely: Sheri Bukkila, Valerie Holthus, Jamie Barthel, and Ted Butler Councilmember absent: None Also present: City Administrator, Jim Dickinson City Engineer/Public Works Director, David Berkowitz Assistant City Engineer, Todd Haas Community Development Director, Joe Janish Others APPROVAL OFAGENDA The Council agreed with the request of Mr. Dickinson to add Item 7a. Mike Knight Room Naming to the agenda. `L DENSITY/CONCEPT DISCUSSION 7� Mr. Janish stated the Council is asked to discuss density at the northeast corner of Th Avenue and Bunker Lake Boulevard. Participating remotely, he introduced Della Kolpin and Kyle Didier, Partners at NextNest, LLC and Blaine Waters with Quest Development who stated he is the master developer of the Sonsteby property. Mr. Waters explained that Ms. Kolpin and Mr. Didier are prospective builders of a multi -family building on the north parcel. Mr. Waters stated they would like feedback and find out the City's vision in reaching the Met Council's density goals on these parcels. Mr. Didier gave background information on NextNest, LLC and stated their goal is to address the need for quality market rate multi -family housing. Ms. Kolpin displayed the site plan for the northeast corner of the intersection of Bunker Lake Boulevard and 7s' Avenue. She said the site is 14 acres, 6 being commercial and 8 being residential. She stated they are proposing a three-story, 115 -unit apartment building on 3.75 acres with below grade parking. She said the density for the apartment building will be 30 units per acre. Ms. Kolpin stated 44 row townhomes are planned. She said when you look at the overall plan, the density is in the 12-20 units per acre range. Mayor Trude asked for a description of the row townhomes. Mr. Waters replied they will all have Andover City Council Workshop Meeting Minutes — November 24, 2020 Page 2 their own entrances and would be constructed by a national builder. He said more specific information will be presented at later time. Mayor Trude stated it was smart of the builder to think about orientation to the sun and wind when laying out the site plan. Councilmember Barthel asked if the row townhomes sell well if they are next to an apartment building and asked how large the apartment units will be. Mr. Waters replied the row townhomes will sell quickly. He stated the row townhomes are a big picture concept and he would like to focus on the apartment building as the builders for that product are present now. Ms. Kolpin stated the 115 units will consist of studio, one bedroom, one bedroom with den, and two bedroom units. She said amenities will include a fitness center, lobby with coffee bar, a business center, storage, and will be a pet -friendly building. Councilmember Holthus asked about traffic and access to Bunker Lake Boulevard and Th Avenue. Mr. Waters explained the access points and stated the proposed points are conceptual and will need to be approved by Anoka County and have the support of City staff and Council. Councilmember Bukkila commented she expected the apartment building to front Bunker Lake Boulevard and does not think it is ideal that the row townhomes border Bunker Lake Boulevard. She said she felt the commercial zone would conflict with the residential area. Mr. Waters replied this is a high-level concept plan and can easily be changed. He stated he would like to focus on how the Council feels about the density and variety of product. Councilmember Bukkila asked to review the proposed density on the project. Ms. Kolpin replied the residential portion consists of 8 acres. The apartment building will sit on 3.75 acres with a density of 30 units per acre. She said the remaining acreage is for the row townhomes which will be 10 units per acre. Ms. Kolpin state the average density of the project is 19-20 units per acre. Mr. Janish stated if this area has a higher density, there is potential to have lower density on the south side of Bunker and other areas of the community. Councilmember Bukkila stated she would not consider compromising on increasing units per acre on this design to offset another parcel. Mr. Waters stated the site design is not set in stone and is one concept of many. He explained it is difficult to hit 12 units per acre without an apartment building. He stated they would like to focus on the interest of a three-story apartment building on the proposed site with the understanding this is the best possible way to get to the desired density. Councilmember Bukkila stated she is open to a three-story apartment building with underground parking, but the concept falls below her expectations. She said she would like to see a better layout with safety placed first. Andover City Council Workshop Meeting Minutes —November 24, 2020 Page 3 Ms. Kolpin asked Council if they are acceptable of the proposed mix of multi -family and row townhomes to reach the needed density. Councilmember Holthus replied she is okay with the density and would like to see the apartment building turned and moved to the south, so the parking lot is facing Bunker Lake Boulevard. She suggested moving the row townhomes to the north. Councilmember Holthus said she supports an apartment building and likes having market rate housing near the high school. Councilmember Butler stated he is comfortable with an apartment building and proposed density. He said he has a concern with the layout and would like to see it arranged better when they come back with a proposal. Councilmember Barthel stated he is not a fan of apartment buildings. He said the site plan is not laid out well and would like to see a better layout. Councilmember Barthel stated he would like to see the row townhomes owner occupied. He stated he is concerned the apartments will rent below market rate. Councilmember Barthel indicated he would like to see more row townhomes and fewer apartment units. Mayor Trude reminded Council the corner of Bunker Lake Boulevard and Th Avenue is designated high density in the Comprehensive Plan. She stated the Council is receiving push back from neighborhoods around new developments building on smaller lots as a result of taking density away from the Bunker/Crosstown Drive redevelopment area. Mayor Trude stated the current density of this property is less than what was proposed 10 years ago. She asked the Council to be open-minded and realize that this is what is guided by the Comprehensive Plan as the Council agreed to after prolong discussions of how to shift density to keep the plan approved by the Met Council. Mr. Waters said every builder they have talked to about the townhomes has supported owner - occupied. Mr. Didier explained the apartment building is a market rate proposal with the goal of serving teachers, nurses, and firefighters making $50,000-$80,000 per year. Ms. Kolpin displayed photos of past projects to provide the Council a visualization of their product. She said when they come into a community, they do not have a set standard. She explained they look at the environment in the community and create an exterior architecture that fits its surroundings. Ms. Kolpin showed photos of examples of interior finishes. Mr. Didier stated he is part of a property management company with a focus on high quality maintenance and safety. He explained they do background checks, criminal and financial, to find the right renters for their buildings. Mayor Trude asked if Mr. Didier was the builder and management company. He replied they are the developer, owner, and operator of the apartment building and they will work with a builder to construct it. Andover City Council Workshop Meeting Minutes —November 24, 2020 Page 4 Mayor Trude stated that is a point to highlight to the public as the project moves forward. She said NextNest is in this for the long haul and has the desire to preserve their asset and investment in the community. Mr. Waters stated the developer has every motivation to build a quality product and maintain their investment. Mayor Trude commented that several Councihnembers toured a project in Coon Rapids, with four stories that had been proposed for this site and she feels this is a better product for the City of Andover. Mr. Didier stated many builders have moved away from building high quality housing to provide entertainment centers which cost a lot of money to live at. He said they strive to find a balance between amenities and quality housing to keep the rent structure attractive. He stated they target people making $50,000-$80,000 that are left out of the typical rental market. Mayor Trude asked Mr. Waters and staff if they have received appropriate direction from Council. Mr. Waters confirmed he had the information he needed. Mr. Janish stated staff will follow up with the developers and come up with a strategy to determine if the project can move forward. Mayor Trude asked if they would need to go through a Comprehensive Plan Amendment. Mr. Janish replied the density is within the Comprehensive Plan requirements and an amendment is not necessary based on the site plan shown. Mayor Trude thanked the presenters for attending. DEVELOPMENT REQUIREMENTS DISCUSSION Mr. Jana stated staff is looking for direction on the current standard of 110 -foot lot buildability requirement i e MUSA based on input from developers. Mr. Janish identified the City Code that requires the 110- lot depth. Mr. Janish gave the history on and reasons why the City Code was established. He presenfeiA,,surveys of neighboring communities and how they handle the buildable lot depth. He explained that er cities do not have the same standards as Andover. Mayor Trude referred to the Catchers k development in which there were trees buried in back yards. She said City Code required the deve er to excavate back yards so they had buildable space. Mr. Janish stated he had heard of situation Blaine where homeowners woke up to their backyard sloughing off several feet because of the sol Mr. Berkowitz explained the issues the City was running into pn o establishing the 110 -foot buildability requirement. He explained the depth includes the housing driveways, utilities and 10 feet behind the house. He stated there were situations where the drivewiay.4.nd utilities would settle, and homeowners would come to the City and ask why they didn't require developer to make soil corrections. He said staff ran into situations where people would want to b ' a deck off the back of their house and found out there was a pond easement that went directly up to housing structure. He explained staff would bring variances and encroachments to the Council T Y O F O TV L. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.AN DOVE RMN. GOV TO: Mayor and Council Members CC: Jim Dickinson, City Administrator\ FROM: David Berkowitz, Director of Public \Works/City Engineer SUBJECT: CIP Discussion/Streets - Engineering DATE: May 25, 2021 3. INTRODUCTION The City Council is requested to discuss information presented regarding the City street infrastructure conditions and discuss funding needs. DISCUSSION Staff has been working on street evaluations and cost estimates to improve the City street infrastructure over the next 10 years and beyond. Jason Baumunk and I will provide a detailed map and cost estimates that will be presented at the meeting to begin the preliminary discussion on how to proceed with planning and funding for the street portion of the 2022-2026 Capital Improvement Plan. ACTION REQUIRED The City Council is requested to discuss information presented regarding the City street infrastructure system and direct staff on the next step toward planning and funding future roadway improvements. Respectfully submitted, David D. Berkowitz TT Y O F JOVE. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: Mayor and Council Members Jim Dickinson, City Administrator David Berkowitz, Director of Public Works/City Engineer Discuss Advanced Metering Infrastructure (AMI)/321-18 - Engineering May 25, 2021 q % INTRODUCTION The City Council is requested to discuss the process and proposed schedule for the Advanced Metering Infrastructure (AMI) project and review options for public outreach information to be provided prior to infrastructure installation. Core and Main has been awarded the contract for the AMI project and is scheduled to receive radio shipment and begin installation in late July. At the meeting staff will review with the City Council the process, proposed schedule and discuss options for public outreach. Attached is information the City of Eagan has provided to their residents for the AMI project they are doing this year. ACTION REQUIRED The City Council is requested to review and discuss information presented and direct staff on how to proceed with public outreach. Respectfully submitted, David D. Berkowitz Attachments: City of Eagan AMI Public Outreach Information's The City of Eagan has begun converting from an in-person water meter reading system to a remote reading system. The update, scheduled for completion in late 2021, will provide more timely information about water use. Most residents don't need to do anything. However, if you see a meter technician in your yard, feel free to say hello. The technician will simply install the update to the meter on the exterior of your home. If an update can't be completed outside, the technician will knock on your door to find the best time to complete the update or will leave a card to schedule an appointment to access your water meter. All technicians will use COVID-19 safety protocols to keep everyone safe FAQs Why is the water meter reading system being updated? Eagan's water meter reading system is several decades old. The meter reading equipment is increasingly unreliable and no longer supported. In-person meter reading services will be ending 12/31/2021, so we are preparing for this transition. The update will allow for meters to be read remotely, which will help with efficiency. Gathering more up-to-date information on water usage will help you and us save money in the long-term. Will my home, water, or power be impacted by the update? Most likely not. If the meter reading update cannot be completed from the outside of your home, a technician will need to enter your home to access your water meter. You can schedule this with the technician or by calling the number on the flyer they leave at your door. Do I need to be home for the update? In most cases, no. A meter technician will simply install the update to the meter reader located on the outside of your home and be on their way within minutes. In some cases, when the reader update cannot be completed from the outside, the meter technician will knock on your door and/or leave a card to schedule an appointment to access the water meter. If entry into a home is needed, the technicians will use COVID-19 safety protocols to keep you, and themselves, safe. If you see a technician in your yard, feel free to say hello. If they knock, please work with them to find the best time for completing the update. How will I know when my meter reading system is updated? Technicians will be going neighborhood -to -neighborhood, home -to -home on an ongoing basis from spring to fall. So, you may not immediately notice. But you can look for the installation. If it isn't installed yet, no need to call us. Technicians will continue to go home -to -home until all homes have been updated. When will the new meter reading systems be installed? Meter reading system updates are being completed between spring and fall. Technicians will be going neighborhood -to -neighborhood, home -to -home on an ongoing basis. Which remote water meter reading system is the City installing? Eagan is migrating to is the Sensus FlexNet Automatic Metering Infrastructure (AMI) water meter system. For more information go to hftps://sensus.com/resources/videos/sensus-flexnet- com m u n ication-network-overview/. Which water meter reading radio is being installed? The Sensus SmartPoint 510M Non -Pit Set Module is being installed. The radio specification sheet can be found at hftps:Hsensus.com/wp- content/themes/sensus/inc/webdam download.php?asset id=14375871 I am concerned about RF. Will the new system add RF to my home? The RF discussion in some communities was a factor in the product Eagan chose. First, the AMI radio will be on the exterior of your home and sit over the current touch read pad (normally located near you other utilities); NOT inside the home. The exterior walls will block some of the radio signal. Second, the radio only transmits when requested, normally once every 4 hours (or six times a day). A majority of the time, the radio is doing nothing but collecting data via the wire from the meter to the radio (not emitting any energy). The actual daily transmission of data takes less than one second for the entire day (all the transmission times summed up); again to minimize exposure. For more information see https://sensus.com/rf/. Does the water meter emit any type of radio frequency (RF)? The Sensus water meter does NOT have any type of transmitter inside of it (this is very different from other manufacturers that routinely embed the radio transmitter within the meter) and does not emit any energy. Can I opt -out of the remote water meter reading program? Yes, you can opt -out of the remote water meter reading program. Because your meter will have to be manually read, a charge of $50 per read ($200 per year for quarterly reads and $600 per year for monthly reads). The manual water meter reading fee was developed based on Eagan's fee schedule (the cost for employee time and equipment) and the average travel time to/from the Public Works Central Maintenance campus (on Coachman Pt.). The fee is not out of line with other states (which charge monthly fees from $9 to $32 or $27 to $96 per quarter; based on a 2020 review). Most states are charging a "setup fee" (ranging from $27 to $171; based on a 2020 review); Eagan is not charging any setup fee. The manual water meter reading fee will be applied after the AMI installation begins on your meter reading route. AC I T Y 0 F NLD6 06 VWE " W-0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrat FROM: Joe Janish, Community Development irector SUBJECT: Discuss Comprehensive Plan Text Amendment - Planning DATE: May 25, 2021 DISCUSSION On February 16, 2021 the City Council approved moving forward with a Comprehensive Plan Amendment that would allow for the "transferring" of units within the Urban Residential Low (URL) land use. This was determined to be needed as from time to time we will run into issues of meeting the 2.4 units per acre as defined in our current plan. Staff has submitted this text amendment to the Met Council for their review. At first it was indicated that the text amendment was incomplete, however after further consideration the Met Council determined that the text amendment is "potentially inconsistent' with current Met Council policies. Staff has continued to have conversation with Met Council staff. Met Council staff extended their review time to a full 120 days for review as allowed by state statute. Met Council provided staff with the process of determining the steps if the city were to enact an amendment that was potentially inconsistent with Met Council Policy and stated that it is possible for them to require a plan modification. Staff met again with Met Council on May 10, 2021. During this meeting Met Council staff understood the desire to not modify the Future Land Use Map and indicated that as part of the amendment the City of Andover could provide a "Planning Purposes Only" map identifying areas that may run into a lower density issue along with some revisions to the text amendment language. ACTION REQUESTED The City Council is asked to provide feedback to staff. epanish l s bmi d, J Community Development Director Attachments: Proposed Text Amendment Language Future Land Use Map with Markups meant to become "Planning Purposes Only" map. EXHIBIT A Amendment to Page 2-10 Urban Residential Low Density (URL) district is established to create cohesive neighborhoods of single-family detached housing within the MUSA and with access to municipal sewer and water. Residential lots within this district are sized to allow efficient utilization of municipal infrastructure as well as to provide an area large enough to accommodate housing market demands. These neighborhoods must be protected from higher intensity uses with appropriate transitions. These transitions include natural features such as trees, wetlands, streams or major changes in topography. Man-made elements such as streets, parks or earth berms in combination with landscaping are also appropriate. When adjacent to arterial roadways, additional setback distance, landscaping and berms are required. Facilities that generate noise, traffic, and/or glare also require major separation from these neighborhoods. Minimum Lot Size Variable Density 2.4** to 4 units per acre PUD Density 4 units per acre City Utilities Required Corresponding Zoning Districts R-4 Single Family Urban Residential Type of Development Single -Family Detached Housing *Areas within the Metropolitan Urban Service Area (MUSA) are calculated using net density, areas outside of the MUSA are calculated using gross density. **AFeas guided Li4an Residential Lew that aFe al6o within the TFansitional R96idRFi9W d�stw **Some areas guided Urban Residential Low that are also within the Transitional Residential district may qualify for a reduction in minimum density requirements. Some potential areas are identified on Figure 2.4A. See the Transitional Residential district text on Page 2-15 for more information and specific standards. Amendment to Page 2-15 Transitional Residential (TR) District contains properties within the MUSA that are currently zoned for rural residential uses (R-1, R-2, and R-3). These properties are guided for urban development in 5 -year stages as shown in Figure 2.5. Property designated Transitional Residential may only be platted under urban residential guidelines and served by municipal utilities. Lot splits may only occur without municipal services under the requirements of the City Code. Any subdivision of property that results in lots less than 2.5 acres in size must be served with municipal sewer and water. The Transitional Residential District also contains properties that when subdivided will have significant barriers to development. Therefore, properties that fall within the Urban Residential Low (URL) district and the Transitional Residential (TR) district at the time of preliminary plat application may qualify for a reduction in minimum density requirements. If a property meets three (3) or more of the criteria listed below, the City Council may approve a decrease in the minimum density requirements provided the proposed density does not fall below 1.75 units per acre: A. Adequate sanitary sewer or water capacity does not exist to develop the property at the minimum density. B. Previous subdivision of adjacent properties has provided limited access which restricts development potential. C. Meeting the minimum density would not be feasible due to the existence of poor soils, wetlands, floodplain, topography, hydrology or other limiting environmental condition. D. Property is located within a Shoreland District, Scenic River District, Wellhead Protection Area, or Drinking Water Supply Management Area due to State requirements towards limiting impacts to the above noted items. E. For infill type developments, the characteristics of the surrounding neighborhood would not support development of the property at the minimum density. �ZWMWNTFMM�l -e- The City is aware of several properties that may meet three of the five criteria above and has identified these areas on Figure 2.4A. Figure 2AA is for planning purposes only to illustrate the potential applicability of these criteria. Ultimate determination of applicability of these criteria will be at the City Council's discretion and upon site plan review. Property Location 15991 Vale St NW 1326/1346 161st Ave NW 2159 153rd LN NW 14157/14191 Prairie Rd NW 16157 Hanson Blvd NW/1487161st Ave NW TOTAL Properties Not Included 1374 161st Ave NW West of Catchers Creek West 140 Andover Blvd NW 1261/1296 Crosstown Blvd NW 15260 Nightingale St NW 15318 Nightingale St NW Estimated Net Acres 4.0 12.0 6.0 6.4 6.1 34.5 Estimated Net Acres Reason Removed 6.3 Density Acheivable 4.3 Density Acheivable 3.5 Density Acheivable 5.3 Low Priority - Owner Indicated 2.4 Low Priority - Unlikely w/ Hom( 3.0 Low Priority - Owner Indicated 9.9 . ND1 VE jt 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Andover Community Center (ACC) Updates DATE: May 25, 2021 April 2021 FINANCIAL UPDATE Attached for Council review is a Community Center Budget Summary Report for Budget Year 2021. The report reflects activity through April 2021, comparative data with April 2020 and audit data reflecting the entire year of 2020. As the Council well knows, the year 2020 was a difficult year, in part because of the expansion construction, but heavily with imposed COVID restrictions shutting down the entire facility mid- March of 2020 and then finally being allowed to reopen in a restricted capacity early January 2021. The ACC has now been operating for four months since the reopening, thus making the current year (2021) activities somewhat comparable with the first three months of 2020. Moving deeper into 2021, comparative data with 2020 will become more difficult do to the 2020 COVID shutdowns of the facility. Also provided is a historical perspective of actual costs dating back to 2015, like the reporting previously provided to the ACC Advisory Commission. This report does provide history on debt service payments and the property tax levy assigned to debt and operation. The last items attached is a City of Andover Summary of Outstanding Bond Issues which includes the debt associated with the Community Center (the individual issue sheets are provided as well). Administration will review and discuss the attached reports with the Council at the Workshop. itted, CITY OF ANDOVER Community Center Budget Summary Totals Budget Year 2021 Current: 2020 2021 REVENUES Budget Apr YTD %Bud Audit Budget Apr YTD %Bud Departmental Charges for services 19,798 25% 74,809 105,100 33,871 32% Operating Ice Rental $ 470,300 S 122,793 26% $ 361,796 $ 668,000 S 234,162 35% Ttuf Rental - - n/a - 70,000 1,807 3% Track - - Na 301 - 1,109 n/a Fieldhouse Rental 218,000 78,482 36% 133,126 270,000 102,255 38% Proshop 12,000 2,723 23% 4,394 15,000 3,075 21% Vending 13,000 3,646 28% 6,148 16,000 1,574 10% Advertising 39,000 8,000 21% 8,000 50,000 10,333 21% Total Charges for services 752,300 215,644 29% 513,765 1,089,000 354,315 33% Miscellaneous 140,000 27,926 20% 110,781 140,000 36,662 26% Total revenues 892,300 243,570 27% 624,546 1,229,000 390,977 32% 2021 2020 EXPENDITURES Budget Apr YTD %Bud Pre - Audit Budget Apr YTD %Bud Current: Salaries & benefits 629,296 165,647 26% 503,842 757,753 205,191 27% Departmental 79,100 19,798 25% 74,809 105,100 33,871 32% Operating 486,075 89,495 18% 345,588 635,197 133,703 21% Professional services 121,000 16,030 13% 129,261 154,375 14,485 9% Capital outlay 130,000 176,884 0% 100,000 493,000 - n1a Current 1,445,471 290,970 20% 1,153,500 1,652,425 387,250 23% Revenue over(under)ex se (553,171) (47,400) 9% (528,954) (423,425) 3,727 -1% Other financing sources (uses) General Property Tax Levy - - n/a - 155,000 - 0% Investment income - 70 Iva 6,793 - (634) Na Rental/Lease Pymt 638,000 476,814 75% 635,629 638,000 483,808 76% "transfers out (300,000) (300,000) 100% (300,000) (300,000) (300,000) 100% Total financing sources (uses) 338,000 176,884 52% 342,422 493,000 183,174 37% increase (decrease) in and bnlnnce S (215.1711 $ 129A84 -60% $ CITY OF ANDOVER, MINNESOTA Andover Community Center / YMCA Historical Comparison 2015 2016 2017 2018 2019 2020 2021 2021 Actual Actual Actual Actual Actual Actual Budget Apr -YTD Revenues: Charges for services Ice Rental $ 400,619 $ 405,990 S 392,828 S 435,716 S 442,995 S 361,796 S 668,000 S 234,162 Turf Rental - - - - - - 70,000 1,807 Track - - - - - 301 - 1,109 Fieldhouse Rental 187,007 199,286 215,089 218,667 220,225 133,126 270,000 102,255 Proshop 9,258 9,412 9,247 8,606 9,680 4,394 15,000 3,075 Vending 9,279 8,588 9,182 7,470 8,427 6,148 16,000 1,574 Advertising 31.758 26,450 38,819 34,000 4D,850 8,000 50,000 10,333 Charges for services 637,921 649,726 665,165 704,459 722,177 513,765 1,089,000 354,315 Miscellaneous 174,788 136,552 136.149 142,768 131,386 110,781 140,000 36,662 Total revenues 812.709 786,278 801.314 847,227 853,563 624,546 1.229,000 390,977 Expenditures: Current Salaries& benefits 439,304 451,332 481,926 501,108 533,044 503,842 757,753 205,191 Departmental 74,949 77,945 65,612 76,448 66,570 74,809 105,100 33,871 Operating 388,492 364,935 364,242 352,067 330,084 345,588 635,197 133,703 Professional services 142,602 106,381 125,034 104,076 77,818 129,261 154,375 14,485 Capital outlay 47,859 4,900 11,442 39,888 100,000 Current 1,045,347 1,048.452 1,041.714 1,045.141 1,047,404 1,153,500 1,652,425 387,250 Revenue over under expenditures (232,638) (262,174) (240,400) (197,914) (193,841) (528,954) (423.425)1 3,727 Other financing sources (uses) G"eml Property Tax Levy - - - - - - 155,000 - Investment income (1,078) 2,190 2,779 5,780 16,107 6,793 - (634) Rental I Lease Pymt 638,220 640,303 641,691 637,150 636,803 635,629 638,000 483,808 Traasfars out (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) Total financing sources (uses) 337,142 342,493 344,470 342,930 352,910 342,422 493,000 183,174 Net increase (decrease) in fund balance 104,504 80,319 104,070 145,016 159,069 (186,532) 69,575 186,901 Fund balance(deficit)- January I (48,364) 56,140 136,459 240,529 385,545 544,614 358,082 358,082 Fund balance(deficit)- December 31 $ 56,140 S 136,459 S 240,529 S 385.545 S 544614 S 358082 S 427,657 S 544,983 Fond Balance Detail: FB - Replac Ra for Common Space S 143,702 S 154,449 S 179,283 S 173,560 S 200,606 S 190,067 S 215,067 S 215,067 FB - Unassigned (87,562) (17,990) 61,246 211,985 344,008 168,015 212,590 329,916 S 56,140 S 136459 S 240,529 S 385,545 S 544,614 5 358,082 $ 427657 S 544,983 Debt Service Payments 2012C GO Abatement Bonds (P+1) S 1,214,906 S 1,216,506 S 1,213,731 S 1,211,481 S 1,208,931 S 1,215,981 S 1,212,631 S 1,212,631 20I9A GO Abatement Bonds (P +1) 590,150 819,725 819,725 S 1214,906 S 1216506 S 1,213,731 S 1211.481 S 1,208,931 S 1,806,131 S 2,032,356 $ 2,032,356 Properly Tax Levy 2012C GO Abatement Bonds S 975,632 $ 977,332 S 974,418 S 972,055 $ 969,378 S 976,780 S 973,263 S 973,263 2019A GO Abatement Bonds - - - - - L001.090 976,966 976,966 Community Center Operations 155,000 155,000 $ 975,632 $ 977 332 S 974,418 S 972,055 $ 969,378 S 1,977,870 $ 2,105,229 S 2.105,229 CITY OF ANDOVER Summary of Outstanding Bond Issues 2021-2022 Business -Type Activities General Obligation Revenue Bonds Outstanding 2009A G.O. Water Revenue Bonds Outstanding 320,000 Outstanding 245,000 Date of Rate of 2016B G.O. Water Revenue Refunding Bonds at 2021 (660,000) at 2022 at Description Issue Maturity Interest Issued 12/31/2020 Re0red Issued 1213112021 Retired Issued 12/3112022 $ 1,610,000 $ (755,000) $ $ 855,000 Governmental Activities TOTALS $ 41,369,000 $ (2,634,000) $ 1,310,000 $ 39,960,000 E (2,860,000) $ $ 37,100,000 Abatement Bonds 9200.0.25145 General Obligation Abatement Bonds Carl of Indebtedness 9200.0.25110 2012C G.O. Abatement Bonds 12/27/2012 2/12031 1.00-3.00% 17,315,000 11,475,000 (925,000) - 10,550,000 (945,000) - 9,605,000 2019A G.O. Abatement Bonds 8/12019 2/12040 3.00-5.OD% 15,770,000 15,770,000 (235,000) 15,535,000 (545,000) 14,990,000 27,245,000 (1,160,000) 26,085,000 (1,490,000) 24,595,000 Certificates of Indebtedness/Capital Notes 2016A G.O. Equipment Certificates 2/19/2016 2112021 1.90% 520,000 134,000 034,000) - - - - - 2020AG.O.Equipment Certificates 3/19/2020 2112024 4.00% 1,310,000 1,310,000 (315,000) 1,310,000 2,305,000 (315,000) 1.990,000 Subtotal- Certificates of Indebtedness 1,444,000 (449,000) 1,310,000 2,305,000 (315,000) 1,990,000 Capital Improvement Bonds 2018A G.O. Capital Improvement Plan Bonds 1227/2018 2/1/2044 3.00-5.00% 10,000,000 9,915,000 -0w (125.000) 9790,000 (130,000) 9,660,000 Subtotal- Capital Improvement Bonds ow (125,000) 9790,000 (130,000) 9,660,000 Referendum Bonds: 2010A G.O. Open Space Referendum Bonds 2/18/2010 2/1/2022 2.D0-3.125% 1,660,000 335,000 (165,000) 170,000 (170,000) TOTALS $ 39,024,000 $ (1,899,000) $ 1,310,000 $ 38,350,000 $ (2,106,000) $ $ 38,245,000 Business -Type Activities General Obligation Revenue Bonds 2009A G.O. Water Revenue Bonds 3/26/2009 2/1/2024 2.000.251/6 1,025,000 320,000 (75,000) - 245,000 (80,000) - 165,000 2016B G.O. Water Revenue Refunding Bonds 12/7/2016 2/12023 2.00°/6 3,925,000 2,025,000 (660,000) 1,365,000 (675,000) 690,000 Subtotal - General Obligation Bonds TOTALS $ 2,345,000 $ 1735,000) $ $ 1,610,000 $ (755,000) $ $ 855,000 TOTALS $ 41,369,000 $ (2,634,000) $ 1,310,000 $ 39,960,000 E (2,860,000) $ $ 37,100,000 Abatement Bonds 9200.0.25145 Carl of Indebtedness 9200.0.25110 Capital Improvement Bonds 9200.D.25120 Referendum Bonds 9200.0.25180 Amount to be provided for DS 9200.0.18201 of Andover, Minnesota $17,315,000 Taxable General Obligation Abatement Bonds, Series 2012C Taxable Net Cash Refunding of City of Andover Community Center's Series 06 & Series 07 Project Lease Rev Bonds - Issue Summary Debt Service Schedule Date Principal Coupon Interest Total P+i Fiscal Total 12272012 -- Average Lire 10267 Years Avenge Coupon - 021012013 320,000.00 1.000% 36,878.78 356,878.78 356,878.78 08/012013 - - 193,640.63 193,640.63 - 021012014 320,000.00 I.000Y. 193,640.63 513,640.63 707,281.26 081012014 - 192,040.63 192,040.63 - 021012015 835,000.00 1.0007. 192,040.63 1,027,040.63 1,219,08126 08/012015 - 187,865.63 187,865.63 - 02/012016 845,000.00 ODOM. 187,965.63 1,012,865.63 1,220,73116 0&012016 - - 183,640.63 183,640.63 - 07A112017 855,000.00- _ 2.OW% 183,690.63 1,038,640.63 1,222,28126 08/012017 -175.090.63 175,090.63 - 02/012018 870,000.00 2.0000/ 175,090.63 1,045,090.63 1,220,191.26 08!012018 -166.390.63 166,390.63 - 02/012019 885,000.00 2.000% 166,390.63 1,051,390.63 1,217,78126 08/012019 - - 157,540.63 157,540.63 - 02MI2020 910,000.00 2.0001% 157,540.63 1,067,540.63 1,225,08126 08+012020 -148.440.63 149,440.63 - 02/012021 925,000.00 2.000% 148,440.63 1,073,44063 1121,88116 OWI/2021 - - 139,190.63 139,190.63 - 02,01=12 945,000.00 2000% 139,190.63 1,084,190.63 1,223,381.26 081012022 - - 129,740.63 129,746.63 021012023 960,000.00 2.125% 129,740.63 1,089,740.63 1,219,48126 081012023 - 119,540.63 119,540.63 02/012024 985,00000 2.250% 119,540.63 1,104,540,63 1,224,08116 08/012024 - - 109,459.38 108,459.38 07A112025 I,OO5,00000 2500-A 109,459.38 1,113,459.38 1,221,918.76 08!012025 - 95,896.88 95,896.88 - WAI2026 1,030,000.00 2.625% 95,896.88 1,125,896.88 1,221,793.76 081012026 - 92,379.13 82,37&13 - 02/012027 1,055,000.00 2.7504'0 82,378.13 1,137,378.13 1,219,756.26 0&012027 - - 67,871.88 67,871.88 02/012028 11085,000.00 2.875% 67,871.88 1,152,871-88 1,720,743.76 0910120I8 - - 52,275.00 52,275.00 - 021012029 1,125,000.00 3.000% 52,275.00 1,177,275.00 1,229,550.00 OW12029 - 35,400.00 _ 35,400.00 - 02/012030 1,160,000.00 3.000% 35,400.00 1,195,400.00 1,230,800.00 08/012030 - - 18,000.00 18,000.00 - 02/012031 1,200,000.00 3.000% 18,000.00 1,218,000.00 1,236,000.00 Total S17,315,000.00 54,543,685.18 S2t,g58,6mis Yield Statistics Bond Year Dollars $177,765.31 Average Lire 10267 Years Avenge Coupon 2.5560072% Net InterestCost(NIC) 2.5822097% True Interest Con (TIC) 2.5635140% Bond Yield for Arbitrege Purposes 24942581% All Inclusive Cost (A1C) 2.6150609% IRS Form 8038 NaIntelwBCest 2.5276709% Weighted Average Maturity 16.212 Years MJXTm auoNea4men I Issue Summsry I TWISU012112:9PM EHLERS ILAULa5lN PUBLIC IINANc! Citv of Andover. Minnesota $15,770,000 General Obligation Tax Abatement Bonds, Series 2019A (Community Center Expansion) - Qualified 501c3 Debt Service Schedule Interest Total P+I Fiscal Total 08/01/2019 - - - - - 08/01/2020 - - 590,150.00 590,150.00 - 02/01/2021 235,000.00 5.000% 295,075.00 530,075.00 1,120,225.00 08/01/2021 - - 289,200.00 289,200.00 - 02/01/2022 545,000.00 5.000% 289,200.00 834,200.00 1,123,400.00 08/01/2022 - - 275,575.00 275,575.00 - 02/01/2023 570,000.00 5.000% 275,575.00 845,575.00 1,121,150.00 08/01/2023 - - 261,325.00 261,325.00 - 02/01/2024 600,000.00 5.000% 261,325.00 861,325.00 1,122,650.00 08/01/2024 246,325.00 246,325.00 02/01/2025 630,000.00 5.000% 246,325.00 876,325.00 1,122,650.00 08/01/2025 - - 230,575.00 230,575.00 - 02/01/2026 660,000.00 5.000% 230,575.00 890,575.00 1,121,150.00 08/01/2026 - - 214,075.00 214,075.00 - 02/01/2027 695,000.00 5.000% 214,075.00 909,075.00 1,123,150.00 08/01/2027 - - 196,700.00 196,700.00 - 02/01/2028 725,000.00 5.000% 196,700.00 921,700.00 1,118,400.00 08/01/2028 - - 178,575.00 178,575.00 - 02/01/2029 765,000.00 4.000% 178,575.00 943,575.00 1,122,150.00 08/01/2029 163,275.00 163,275.00 02/01/2030 795,000.00 4.000% 163,275.00 958,275.00 1,121,550.00 08/01/2030 - - 147,375.00 147,375.00 - 02/01/2031 825,000.00 4.000% 147,375.00 972,375.00 1,119,750.00 08/01/2031 - - 130,875.00 130,875.00 - 02/01/2032 860,000.00 3.000% 130,875.00 990,875.00 1,121,750.00 08/01/2032 - - 117,975.00 117,975.00 - 02/01/2033 885,000.00 3.000% 117,975.00 1,002,975.00 1,120,950.00 08/012033 - - 104,700.00 104,700.00 - 02/01/2034 910,000.00 3.000% 104,700.00 1,014,700.00 1,119,400.00 08/01/2034 91,050.00 91,050.00 02/01/2035 940,000.00 3.000% 91,050.00 1,031,050.00 1,122,100.00 08/01/2035 - - 76,950.00 76,950.00 - 02/01/2036 965,000.00 3.000% 76,950.00 1,041,950.00 1,118,900.00 08/01/2036 - - 62,475.00 62,475.00 - 02/01/2037 995,000.00 3.000% 62,475.00 1,057,475.00 1,119,950.00 08/01/2037 - - 47,550.00 47,550.00 - 02/01/2038 1,025,000.00 3.000% 47,550.00 1,072,550.00 1,120,100.00 08/01/2038 - - 32,175.00 32,175.00 - 02/01/2039 1,055,000.00 3.000% 32,175.00 1,087,175.00 1,119,350.00 08/01/2039 16,350.00 16,350.00 02/01/2040 1,090,000.00 3.000% 16,350.00 1,106,350.00 1,122,700.00 Total $15,770,000.00 - $6,651,425.00 $22,421,425.00 Yield Statistics Net Interact Cost 2.4429752% All Inclusive Cost IRS Form 8038 Net Interest Cost 2.4888115% Weighted Average Maturity ---- 12.110 Years Senes2019AWTaeAtnate I SINGUBPUAPOSE 1 1/162019 1 10:59M --_---�i-- --- — EHLERS Q 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator 2022 Budget Development Discussion May 25, 2021 INTRODUCTION City Administration has starting to focus on the 2021 Annual Operating Budget Development process and is looking to update the City Council and seek direction as the preparation of the 2021 Annual Operating Budget proceeds. City Administration will review briefly with the Council the bold italics items at the meeting. DISCUSSION The following are the 2021 Budget Development guidelines adopted at the May 4th City Council meeting: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness using sustainable revenue sources and operational efficiencies commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness using sustainable revenue sources and operational efficiencies. Note: Preliminary Anoka County Assessor estimated taxable market value figures for the City of Andover base on numbers presented at the Board of Review meeting are reflecting close to a 9% increase in total taxable market value. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2022 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management & information technology) through targeting revenue enhancements or expenditure limitations in the 2021 adopted General Fund budget. Note: With property tax revenues making up close to 80% of the total General Fund revenues cash flow designations approaching 50% are appropriate and recommended by the City's auditor. The 2021 budget development exceeded this guideline for cash flow, also Emergency Fund Balances (approximately 3% of planned General Fund expenditures per finance policy) are in place to stabilize a situation, not be a complete solution. Staff will review with the Council the final -audited 2020 General Fund Fund Balance Analysis at the June workshop meeting. 3) A commitment to limit the 2021 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2021 debt levy was 21.19% of the gross tax levy, the 25% guideline for 2022 provides reasonable margin to accommodate additional long-term debt. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced based on a cost benefit analysis rather than a year -based replacement schedule. Note: The City Vehicle Purchasing Committee has been meeting and is performing this analysis and will make recommendations on equipment needs to the City Council as part of the 2022-2026 Capital Improvement Plan (CIP) development process. This will be covered in more detail with future CIP discussions. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: The City continually maintains various financial models to determine the long-term impacts of present-day expenditures and financing decisions. Fiscal assumptions are based upon a set of financial data including growth factors, tax capacity valuations, per capita spending, fund balance reserve, and debt ratios. 6) Continued commitment to planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. Note: The most recent Council Community Vision and Organizational Goals and Values document was adopted by the City Council on December 3, 2019. Administration will assure that direction provided in that document is integrated into department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost-effective manner. Note: Special attention is given to fiscal values, commercial & residential development or redevelopment, collaboration opportunities, service delivery, livability, and image of the community. Staffing: Administration is expecting new staffing requests from various Departments for the 2022 budget. Deadline for submission of those requests will be July lsr There are some anticipated retirements and staff vacancies within the next few years; in response Administration/Human Resources will continue to focus on succession planning, utilization of internship opportunities, continued cross -training of staff, and/or possible realignment of resources. Personnel Related Implications: To date the following are the other projected issues facing personnel related expenses: 1. Human Resources will review all position -based salaries and the associated benefit package to determine if the total package is competitive with other government entities. Pay steps for eligible employees will be included in a 2022 budget proposal. A cost of living adjustment (COLA) for non -bargaining employees will be evaluated. The current Public Works Union contract expires December 31, 2021. Negotiations for a new contract are underway for 2022. 2. A midyear review of the employee health plan for the 2022 Budget will be conducted with our broker in early July. For the 2021 budget, Administration recommended to stay with the Health Partners Open Access program. The existing HSA plan with higher deductibles ($6,900 single and $13,800 family) and stacked with an HRA (Health Reimbursement Arrangement) was offered for 2021. The HRA was funded utilizing premium savings that were achieved from the proposed renewal to anew higher deductible plan. Employees have $3,500 single and $7,000 family deductibles; but with the stacked HRA, the City will reimburse the remainder of the deductible, if needed, to the provider up to $3,400 for single and $6,800 for family. The plan offered is accompanied with a health spending account (HSA), originally implemented in 2006. The City does contribute annually to an employee's HSA to assist with the high deductible out of pocket costs. That contribution is evaluated annually as part of the marketing of the health insurance plans. Contractual Departments: 1. The City Attorney 2021 contract reflected a 2% increase over the 2020 contract. There have been limited discussions to date for 2022. 2. The 2021 City of Andover Law Enforcement expenditure budget is $3,287,046 which is offset by a Police State Aid revenue budget of $137,280 and School Liaison revenue budget of $102,331 reflecting a net tax levy impact of $3,047,435. The 2021 Sheriff s contract provides for: a. 80 hours per day of patrol service b. 6 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. 2 Patrol Investigators e. 50% of the Crime Watch Program's coordinator position. Per contract, the Sheriff always provides the required number of deputies for all hours contracted by the City. If the Sheriff's Office has a deputy vacancy or a deputy is injured etc., they still provide the City with a deputy at straight time even though they may have to fill those hours with overtime which at times may cost the Sheriff s Department additional but is not billable per the contract. Staff has had initial discussions with the Anoka County Sheriff for a 2022 status quo contract, and the Anoka County Sheriff's Office will be scheduled to be before the City Council likely at the June or August workshop meeting. Council Memberships and Donations/Contributions: The following memberships/contributions are currently included in the 2021 Budget: • North Metro Mayors Association $14,550 (GF) • Metro Cities $ 9,542 (GF) ■ Mediation Services $ 3,666 (GF) • YMCA — Water Safety Program $ 9,000 (GF) ■ Alexandra House $20,928 ($15,328 GF & $5,600 CG) ■ Youth First (Program Funding) $14,000 ($12,000 GF & $2,000 CG) • NW Anoka Co. Community Consortium - JPA $10,000 (GF) • Teen Center Funding (YMCA) $24,500 ($8,100 GF & $16,400 CG) ■ Family of Promise $ 3,000 (CG) ■ Lee Carlson Central Center for Family Resources $ 1,500 (GF) ■ Senior High Parties $ 1,000 (CG) ■ Stepping Stone $ 1,000 (CG) • Hope for Youth $ 1,000 (CG) Some are funded via the General Fund (GF), and those that qualify for charitable gambling funding are done through the Charitable Gambling (CG) Special Revenue Fund. Council direction will be sought on the memberships/contributions for 2022. Capital Projects Levy: Capital Projects Levy — The 2021 Capital Projects Levy Budget specifically designates $2,068,577 of the general tax levy to capital projects and equipment needs relating to Capital Project Outlay ($250,000), Road and Bridge ($1,342,456), Pedestrian Trail Maintenance ($106,121), Park Projects ($15,000) and Facility Maintenance Reserve ($355,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is evaluated annually and along with Capital Outlay, Pedestrian Trail Maintenance, Parks Projects, and Facility Maintenance levies increased/decreased according to the City Council budget guidelines. Road and Bridge An adjustment was made to the Road & Bridge funding formula in 2014, primarily to stop the continual decrease in the levy that has been happening over the past few years due to decreases in the Anoka County Assessor taxable market value figures for the City of Andover. Based on Council discussion, consensus was to stop the decline in road funding and evaluate annually through the adopted City Council Budget Development Guidelines. It should be noted that in 2014, Local Government Aid (LGA) in the amount of $74,655 was used to help fund the Road & Bridge Fund. That State of Minnesota funding has largely gone away, down to $0.00 in 2017, and remain at 0.00 each year since. Future increases in LGA or even the presence of LGA for the City of Andover based on the current State formula are remote. The 2019 City of Andover Road & Bridge levy was $1,254,788, a 7.34% increase over 2018. The 2020 budget contained a 2.60% increase ($32,681) to $1,287,469. The 2021 budget contained a 4.27% increase ($54,967) to $1,342,456. Administration will likely be again proposing an increase for 2022. The amount of the increase will be dependent on continued Engineering analysis of the road infrastructure. Pedestrian Trail Maintenance The 2019 City of Andover Pedestrian Trail Maintenance levy was $102,000, a 2.00% increase over 2018. The 2020 budget included a 2% increase ($2,040) to $104,040. The 2021 budget included a 2% increase ($2,081) to $106,121. Administration will likely be proposing an increase again for 2022. Park Improvements This levy is an annual appropriation to be used to underwrite park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a supplemental source of capital funding for park projects that is separately identified in the City's Five -Year Capital Improvement Plan. The 2015 levy was $61,500, but only $15,000 was levied for 2016. $46,500 of the previous levy was re -assigned to the General Fund to focus on Park's maintenance/replacement items. In addition to the re -assigned funds an additional $43,500 of General Fund levy was assigned to Parks Repair/Replacement items for a total levy of $90,000 in 2016, and that continued for 2017. The 2018 General Fund levy assigned to Parks Repair/Replacement items levy was increased to $100,000 for 2019 and then to $120,000 for 2020 & 2021; the Parks Project levy continues to remain at $15,000. Administration will not be recommending there be any adjustment to these levies for 2022. The Parks Repair/Replacement items levy will be proposed at $120,000 and the Parks Project levy at $15, 000. • Equipment/Projects Under the Capital Projects Levy, a levy is proposed to be designated to Capital Equipment/Project expenditures identified through the CIP process. Through this designation, the City, over time, will build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. The 2020 levy was $275,000 andAdministration is recommending a $25,000 decrease to offset the increased levy for the 2020A G.O. Equipment Certificates sold on March 19, 2020. The 2021 levy was $250,000, Administration will likely recommend no change for 2022. • Capital Equipment/Projects This was a reassigned levy in 2017 to provide for the 2017 equipment purchases. Administration/Finance proposed a straight $500,000 Capital Equipment Purchases Levy for the 2017 equipment purchases rather than through debt service levy and an equipment bond. This process continued through 2018 but increased the levy by $25,000 to $525,000. In 2019, this levy is turned back to debt service levy for the City Campus Master Plan implementation. Administration did not recommend a Capital Equipment/Project levy for 2021; the same is anticipated for 2022. • Facility Maintenance This was a new $50,000 levy proposed for 2018. A facility condition assessment study identified many maintenance repairs for City facilities such as roof repairs, HVAC, electrical panels, fire alarm systems, windows, and air quality related items (the comprehensive listing which is proactive and reactive was shared with the Council at the August 25a` workshop meeting). This levy was increased to $355,000 for the 2019 budget to help address the significant deferred maintenance items that have been identified. Most recently for the Public Works and Community Center buildings expansion projects within the City Campus Master Plan materialized. The $355,000 levy is anticipated to continue to address additional facility repairs. Administration did not recommend any adjustment to Facility Maintenance levy for 2021. $355,000 will again be proposedfor the 2022 levy. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense savings to the City. (Staff, along with Ehlers & Associates will complete reviews to see if any refinancing opportunities are available at this time, we will then continue to monitor refunding opportunities, as markets can move quickly, and calculate potential savings for each issue that may meet parameters which may generate savings.) The current 2021 Debt Service levy is as follows: • 2010A G.O.Open Space Referendum • 2012C Taxable G.O. Abatement Bonds • 2018A Capital Improvement Plan Bonds • 2019A GO Abatement Bonds • 2020A GO Equipment Certificates • 2021 GO Equipment Certificates Total Staff will review with the Council at the meeting. ACTION REQUESTED $ 151,078 (The last year is 202 1) $ 973,263 (The last year is 203 1) $ 456,344 (The last year is 2043) $ 976,966 (The last year is 2039) $ 406,224 (The last year is 2023) $ 170,000 (The last year is 2025) $3,133,875 The Council is requested to receive a presentation and provide direction to staff. submitted,