HomeMy WebLinkAboutWK - October 17, 20231685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
City Council Workshop
Tuesday, October 17, 2023
City Hall — Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. 2024 Budget Development Discussion/ Focus on Staffing -Administration
3. Adjournment
LC I T Y 0 F
MOVE
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: 2024 Budget Development Discussion / Focus on Staffing
DATE: October 17, 2023
INTRODUCTION
The Council has had several reviews of the 2024 Proposed General Fund Budget that will be
supported by the 2024 Tax Levy. The Council did adopt at the September 5th regular Council
meeting the 2024 Preliminary Levy certification. This certification is the outcome of budget
workshops held with the Council over the summer. The Preliminary 2024 Budget proposes a total
property tax levy of $18,097,274: $11,731,126 (64.83%) operational levy, $3,891,710 (21.50%)
debt service levy, and $2,474,438 (13.67%) other levies.
The 2024 Proposed Property Tax Levy is estimated to increase the current City tax rate by 3.72%.
That rate will be applied to the City's growing tax base and will reflect a 6.00% increase in the
gross tax levy. The focus of the 2024 Budget and Levy is to address inflationary items, capital
replacements, an infusion of funds into the mill and overlay program and address staff retention.
The Council has the right to reduce or keep constant this levy until the final certification date of
December 28, 2023.
This evening's discussion will focus on Staffmg.
BACKGROUND
The following are the 2024 Budget Development guidelines adopted at the April 4a' 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.
Note: The Anoka County Assessor estimated taxable market value figures for the City of
Andover reflect a 3.34 % increase in total taxable market value for 2024, last year the
increase was 23%.
2) A fiscal goal that works toward establishing the General Fund balance for working capital at
no less than 45% of planned 2024 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 2023
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 2023 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. The Council
did approve at the September 5" Council meeting a $200,000 transfer to the Central
Equipment Internal Service Fund to offset the past year's additional costs in fuel and parts
due to COVID-19 and an extended winter season.
3) A commitment to limit the 2024 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 2023 debt levy was 22.06% of the gross tax levy, the 25% guideline for
2024 will be attained via the structured management of the current long-term debt as an
equipment certificate is contemplated for,2o2 Currently set at 21.5%.
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 2024-2028 Capital Improvement Plan (CIP) development process. The 2024-2028 CIP
was adopted after a public hearing at the September 191h Council meeting.
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 ofpresent-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 strategic planning targeted toward meeting immediate and long-
term operational, staffing, infrastructure and facility needs.
Note On May 25, 2023, and June 8, 2023, the Andover City Council and Staff Leadership
Team convened work sessions with Facilitator Phil Kern for the purpose of updating its
long-term vision, organizational values, external values, and short-term goals.
The outcome of those sessions was summarized, and the Council adopted the updated "City
of Andover Strategic Plan" at the June 20 City Council meeting. Administration will
ensure that the direction provided 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 will be given to fiscal values, commercial & residential development
or redevelopment, collaboration opportunities, service delivery, livability, and image of the
community.
Strategic Plan Reference:
Consistent with the new strategic plan, the City will be prioritizing staff to assure that the City of
Andover is supported by talented and well -supported officials and that its employees operate in a
strong organizational culture providing stability, creativity, and excellence in delivery of service.
The strategic plan provides the following goals:
• Develop and implement succession plans, identifying and establishing appropriate depth
within each department and mentoring employees to gain organizational capacity.
• Implement actions related to staff retention and attraction in order to keep the City market
competitive (compensation, benefits, etc.).
• Evaluate staffing and level of service for Fire, EMS, and Sheriff's Office to provide
effective fire and rescue response.
• Continue to enter into collaborative agreements and partnerships when mutually
beneficial.
Staffing Focus:
There are anticipated retirements and staff vacancies within the current and the next few years; in
response Administration/Human Resources continues to focus on succession planning, utilization
of internship opportunities, continued cross -training of staff, and/or realignment of resources.
Some realignments in 2022 added significant new responsibilities and pay adjustments were made
and continue to carry forward into 2023.
Administration did receive a new staffing requestfrom the Fire Departmentfor the 2024 budget.
Deadline for submission was July 1'�
Fire Department — New for the 2022 budget was to fill a full-time Assistant Chief position; that
position was filled early August 2022. The 2022 budget also contained additional funds to help
meet acceptable response times with an enhanced Duty Crew model. Administration and Fire are
closely monitoring the progress of the Duty Crew model and continue to adjust and adapt. Success
of the duty crew model is crucial as alternatives such as full-time firefighters are expensive.
The Fire Department staffing request outlines what a fulltime firefighting model would look like;
bottom line expensive, an additional $1.5 million per year for operations, plus additional capital
expenses to bring fire stations up to code for fulltime staffing (sleeping quarters). Administration
is not recommending the full-time firefighting model for the 2024 budget but does want the
Council to be aware of the cost of that model. Administration is evaluatinL options for
administrative support service options for the Fire Department.
Sheriffs Contract: The approved 2023 City of Andover Law Enforcement expenditure is
budgeted at $3,347,315 which is offset by a Police State Aid revenue budget of $126,192 and
School Liaison revenue budget of $106,465 reflecting a net tax levy impact of $3,114,658.
The 2023 Sheriff s contract provides for:
a. 72 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
It should be noted that the 2023 contract was the outcome of discussions with the Anoka County
Sheriff challenging the Sheriff to take into consideration efficiencies brought about by technology
investments and a detailed evaluation of reactive/proactive patrolling, and matching staffing with
historical incident call times.
Discussions with the Anoka County Sheriff were for a 2024 status quo contract The 2024 City
of Andover Law Enforcement contract was approved at the September 19«' City Council meeting
with expenditures budgeted at $3,739,849 (11.73 % increase), offset by a Police State Aid revenue
budget of $128,104 and School Liaison revenue budget of $110,767 reflecting a net tax levy
impact of $3,500,978 (12.40% increase).
The 2024 Sheriff s contract provides for
a. 72 hours per day of patrol service
b. 6 hours per day of service provided by a Community Service Officer
C. 2 full-time Deputy Sheriffs assigned to Community Oriented Policing (working in such
areas as patrol, selected enforcement efforts, and crime prevention).
d. 2 Patrol Investigators
Please note that the Crime Watch Coordinator position will now be under the Sheriff service
umbrella.
Per contract, the Sheriff always provides the required number of deputies for all hours contracted
by the City. If the Sheriffs 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.
Also, as a reminder, recent legislation regarding limitations placed on School Liaison Officers was
met with a decision by the Anoka County Sheriff to not place School Liaison Officers in Andover
High School and Oak View Middle School. There currently is a push for the Governor to call a
special session to provide more clarity to the new law.
In response, Administration and the Sheriff's Office have addressed this in the 2024 Law
Enforcement Contract to address the School Liaison Officers indicated in italics above and adding
the following language to the contract: "In the event the Sheriff reassigns staff to an assignment
that is not in service to the municipality. The parties will come to a mutual agreement as to a
commensurate reduction in compensation to the County. "
Personnel Related Implications:
Human Resources has reviewed all position -based salaries and the associated benefit package to
determine if the total package is competitive with other government entities.
The current Public Works Union contract expires December 31, 2023. Negotiations were started
in early May for a new contract. A tentative two-year contract has been achieved and the Council
did approve the Public Works Union Contract (2024-2025) at the October 3`d City Council
meeting. That approval provides for a $1.75 per hour market rate adjustment and a 3% COLA
for 2024 and 2025.
Human Resources has reviewed all position -based salaries and the associated benefit package to
determine if the total package is competitive with other government entities. The Human
Resources Manager did present to the Council at the April workshop the findings and sought
direction on how to proceed Administration has included a placeholder in the Human Resources
Budget to address market competitiveness and will review in more detail at the meeting
ACTION REQUESTED
The Council is requested to receive a presentation and provide direction to staff.
submitted,
Jim