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HomeMy WebLinkAboutWK - October22, 20241685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, October 22, 2024 City Hall — Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Discuss City Code Amendment — City Code 12-14-8: Off Street Parking Requirements — City of Andover - Planning 3. Discuss Anoka County Highway Department Preliminary Roundabout Layout for 7th Ave. NW/165th Ave. NW/24-35 - Engineering 4. Tree Ordinance/Policy Proposal — Engineering 5. Discuss Potential Eldorado Street NW Right -of -Way Vacation - Engineering 6. September 2024 Community Center Update 7. 2025 Budget Development Discussion/Update 8. Other Topics 9. Adjournment ANLb bV90 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor & Councilmembers CC: Dave Berkowitz, Interim City Administrator:�W FROM: Joe Janish, Community Development Director SUBJECT: Discuss City Code Amendment — City Code 12-14-8: Off Street Parking Requirements — Planning DATE: October 22, 2024 DISCUSSION At the October 15, 2024 City Council meeting City Council voted to table action on this item and bring this agenda item to the City Council workshop meeting for discussion purposes. The City of Andover has been seeing an increase in rural parcels seeking building permits with homes being built further back than the minimum setbacks. Typically this is done due to wetlands, or topography. As part of the review process staff discussion has centered on emergency vehicle access to these homes. In order to meet emergency responder's needs the attached ordinance has been developed, which establishes criteria for minimum driveway width, and requires a turnaround under certain circumstances. All Driveways: • Shall be at least 12 feet wide driving surface. • Obstructions adjacent to and directly over the driveway shall be removed to provide a 14 foot clear width and 15 foot clear height. All Driveways in R-1, R-2, R-3 or RR Zoning Districts: • Up to 150 feet in length shall meet the Standard Requirements for driveways. • Greater than 150 feet in length shall provide: 0 20 foot driveway driving surface. o Obstructions adjacent to and directly over the driveway shall be removed to provide a 22 foot clear width and 15 foot clear height. o Provide a minimum turning radius. o Provide driveway access to all dwellings including accessory dwelling units. OR • Greater than 150 feet in length shall provide: 0 12 foot driving surface. o Obstructions adjacent to and directly over the driveway shall be removed to provide a 14 foot clear width and 15 foot clear height. o Between 60 feet and 150 feet away from the principal structure a turnaround for emergency vehicles shall be provided and maintained. • Turnaround shall meet the requirements for driving surface width and clear width and height required by this Section and provide a 28 foot (28') turning radius. • The turnaround shall be at least 50 feet in length, for a total width of 62 feet. ■ See the diagram below for a visual representation of this requirement. Alternative turnaround designs that provide the same level of emergency vehicle access may be approved by the Fire Chief. 28' R TYP.' 1 12-T ACCEPTABLE ALTERNATIVE Wetland hnpacts 0 10 foot driving surface. o Obstructions adjacent to and directly over the driveway shall be removed to provide a 12 foot clear width and 15 foot clear height. o Reduced width only applies to area requiring mitigation of an approved wetland. Places property owner and occupants in charge of keeping areas open and clear of obstructions in order to allow unhindered access for emergency access for emergency vehicles. Planning & Zoning Commission Review The Planning & Zoning commission reviewed the proposed city code amendment at their October 8, 2024 meeting. No public comments were received prior to or during the public. The Planning & Zoning Commission commented on the following: • Are existing driveways grandfather in? • Grandfathering carries with the property into the future. • How are driveways reviewed today? • Only Accessory Dwellings being added to an existing home would require to the best of the ability full compliance. • The clearance requirements would need to be met by everyone. • What is the driving force behind this ordinance? • How did we arrive at 150 foot requirement? • What does city code require for construction materials for driveway materials? • Developed collaboratively by staff, what are other communities doing? The Planning and Zoning Commission provided a recommendation of approval with a 5 ayes -1 nay -1 absent vote. The Commissioner who voted nay provided the following comments prior to the vote: • Those purchasing a home in rural districts may not want to have the expenses of adherence to city code and maintenance costs associated with the requirements. Those owners may desire the more rural feel and view vs. wider driveways. While a good intention making it required vs. a guideline. ACTION REQUESTED When this item is placed on a City Council meeting a motion will be needed to remove the item from the table prior to taking action. However, tonight this item is being brought forward for discussion purposes. jJanJo�ish tfu s mit d, Community Development Director Attachments Draft Ordinance City Code 12-14-8: Off -Street Parking Requirements H. Emergency Access and Driveways: All driveways shall be constructed and maintained in accordance with this Section and all other applicable requirements of the City Code and Minnesota State Fire Code. Standard Requirements for all Driveways: Driveways shall be of a design that will provide reasonable access for emergency service vehicles and meet all fire and public safety standards including: a. At a minimum, the driveway shall have at least a twelve foot (12') wide driving surface with a driveway base and surfacing material that meets the Engineering Design Standards on file with the City Engineer. b. Obstructions adjacent to and directly over the driveway, including but not limited to tree branches, shrubs, landscaping materials, etc. shall be removed to provide a fourteen foot (14') clear width and fifteen foot (15') clear height. 2. Requirements for Rural Driveways: In addition to the requirements for all driveways in this Section, driveways of properties located within a R-1, R-2, R-3, or RR zoning district shall have the following requirements: a. Driveways up to 150 feet in length shall meet the Standard Requirements for all Driveways. b. Driveways greater than 150 feet in length shall meet the following: i. A twenty foot (20') wide driving surface with a driveway base and surfacing material that meets the Engineering Design Standards on file with the City Engineer. ii. Obstructions adjacent to and directly over the driveway, including but not limited to tree branches, shrubs, landscaping materials, etc. shall be removed to provide a twenty-two foot (22') clear width and fifteen foot (15') clear height. iii. Turning Radius: The minimum turning radius shall meet the Engineering Design Standards on file with the City Engineer unless otherwise approved by the Fire Chief. iv. The driveway shall provide driving access to all dwellings on the property, including any accessory dwelling units. c. Alternative Design for Driveways Greater than 150 feet in Length: As an alternative to the twenty foot (20') wide driving surface requirement, driveways may be constructed that meet the following: i. A twelve foot (12') wide driving surface with a driveway base and surfacing material that meets the Engineering Design Standards on file with the City Engineer. ii. Obstructions adjacent to and directly over the driveway, including but not limited to tree branches, shrubs, landscaping materials, etc. shall be removed to provide a fourteen foot (14') clear width and fifteen foot (15') clear height. iii. Between 60 feet and 150 feet away from the principal structure, a turnaround for emergency vehicles shall be provided and maintained by the property owner. Said turnaround shall meet the requirements for driving surface width and clear width and height required by this Section and provide a 28 foot (28') turning radius. The turnaround shall be at least 50 feet in length, for a total width of 62 feet. See the diagram below for a visual representation of this requirement. Alternative turnaround designs that provide the same level of emergency vehicle access may be approved by the Fire Chief. 28' R TYP. 1 . 62' 12'-T 12' ACCEPTABLE ALTERNATIVE 3. Wetland Impacts: A portion of driveways requiring mitigation of a delineated wetland may deviate from the requirements of this Section subject to the following: a. A minimum often foot (10') wide driving surface with a driveway base and surfacing material that meets the Engineering Design Standards on file with the City Engineer shall be provided. b. Obstructions adjacent to and directly over the driveway, including but not limited to tree branches, shrubs, landscaping materials, etc. shall be removed to provide a twelve foot (12') clear width and fifteen foot (15') clear height. c. The reduced driving surface width shall only apply to the area requiring mitigation of an approved wetland. Areas outside of mitigation areas shall meet all requirements of this Section. An approved wetland delineation and mitigation plan shall be provided. 4. Responsibility of Property Owner and Occupants: It shall be the responsibility of the property owner and all occupants of the property to maintain driveways, turnarounds, and clear zones required by this Section. All turnarounds, driveways and clear zones shall be left free of obstructions, including vehicles and other exterior storage items, so as to allow for unhindered access for emergency vehicles. 5. Measuring Driveway Distance: For the purposes of this Section, driveway length shall be measured along the shortest distance from the edge of the roadway surface to the dwelling. It , , ' -% 1 _ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Council Members David Berkowitz, Director of Public Works/City Engineer (D Discuss Anoka County Highway Department Preliminary Roundabout Layout for Its Ave. NW/165`h Ave. NW/24-35 - Engineering October 22, 2024 INTRODUCTION The City Council is requested to Discuss Anoka County Highway Department Preliminary Roundabout Layout for 7`h Ave. NW/165th Ave. NW, Project 24-35. DISCUSSION City staff will provide an overview of the attached proposed roundabout for the intersection of 7`h Avenue NW and 165th Avenue NW and request feedback from the City Council'based on the proposed layout. Comments received will be provided to the Anoka County Highway Department. The open house for this project is tentatively scheduled for Wednesday, November 20, 2024 from 5 p.m. to 7 p.m. at Andover City Hall Council Chambers Project timeline for this project is as follows: Preliminary Design: November 2024 60% Plan Development: December 2024 — January 2025 Environmental Documentation: July 2024 — April 2025 Final Plans: February — May 2025 Bid Letting: October 28, 2025 Construction in Summer 2026 (Exact timing TBD) COUNCIL ACTION The City Council is requested to review the information provided and discussed regarding the roundabout at Crosstown Boulevard and 161" Avene and provide comments. Respectfully submitted, Com° o, David D. Berkowitz, P.E. Attachment: Its Avenue NW and 165th Avenue NW Preliminary Roundabout Layout CSAH 7 / CSAH 158 INTERSECTION IMPROVEMENT 130' DIAMETER ROUNDABOUT PRELIMINARY LAYOUT Anoka County - ' ` • - M I N N E S OTA OCTOBER 2024 1 N T E R N A T 1 0 N A L 0 2 A MILES a� o HaR or NIS-. .roam LEGEND PROPOSED GEOMETRICS EKISTING RIMY UTIUTYEASEMENT WETLAND BOUNDARY DITCH ALIGNMENT CONSTRUCTION LIMITS —� PROP05ED STORM SEWER ON PROPOSED CATCH BASIN - PROPOSED MEDIAN/CURB LOCATION PROPOSED BIT. PAVEMENT ® PROPOSEDCONC. PAVEMENT COUNTY PROPOSED CONIC. WALK PROPOSED CONSTRUCTION LIMITS --- ENGINEERED CONSTRUCTION LIMITS EXISTING TYPICAL SECTIONS 1 PROPOSED TYPICAL SECTIONS WE STA 51.95 %TO ST0. 54+1690 (OW1) NO (WAIL W NA))NLC 90 (WRIT STA 61,717.74 SSTX STA.61.99.50 TO STA. 66.14.99(CSAH) 55(WRIT 10 STA I =T (1 TO STA. 1bll.)61CSAH ) SB ISLII AA 13.17 M M 4A. PN61) (CSAH ) SB (SL)) ..W STA. 42,00.67 T04A 33.65.& (CSAR) NO ISR)) MTD STA 23.95.37 ICA H 7158 NS(SR)I STA. 44.936) TO NN8<9(CR 4 STA W.9).32TO VA. .97 159 MSTA A156 ES RI) STA. 3E.%%1O5T0. 3iNO.55(CR 158 FB SRI) VA. 32,94.96 IS LER)) STA 3E.W.lI RISA. J2.%.%IG t%EBfERII I STA. HwS%B STA55QS%(CSAH)NB(WLD STA. M.14,NM SA 2,.6.73 (CNH) SB (WRIT STA M.6)3T0 ST1.6S.1) 57(CLX) SB IWR)I STA %.6.1) TO M. 14.)).33 RSAH 7 N DLII STA 14,7733 TO STA 1N66.I7(CLH 758(SLII 90. 23.9S. 3M STA. i4Q1. IGEN) NO INTI STA. 2,.47.54 N.125.W.)9(CSW 1 NB ILL) STA .40.83% TO STA 40.91.38 ICA t%WB(EL31 STA. 40�W.W NI STA 4 9J%(CA ISI INS 1111) VA3 A8.95TO5TA 31.43.111@ IMEB(ERI) STA.30.W.COMSTA 3 &I 158E11 `FOW .SAATYCAL.CTroN I I)j I �jl+l� I IIkR'R'm511 RJ�RW'�`` \ r 0 2 A MILES a� o HaR or NIS-. .roam LEGEND PROPOSED GEOMETRICS EKISTING RIMY UTIUTYEASEMENT WETLAND BOUNDARY DITCH ALIGNMENT CONSTRUCTION LIMITS —� PROP05ED STORM SEWER ON PROPOSED CATCH BASIN - PROPOSED MEDIAN/CURB LOCATION PROPOSED BIT. PAVEMENT ® PROPOSEDCONC. PAVEMENT COUNTY PROPOSED CONIC. WALK PROPOSED CONSTRUCTION LIMITS --- ENGINEERED CONSTRUCTION LIMITS EXISTING TYPICAL SECTIONS PROPOSED TYPICAL SECTIONS STA 50.00.67 TO STA S1K9.50 3X)NB STA 51.95 %TO ST0. 54+1690 (OW1) NO (WAIL W NA))NLC 90 (WRIT STA 61,717.74 SSTX STA.61.99.50 TO STA. 66.14.99(CSAH) 55(WRIT 10 STA I =T (1 TO STA. 1bll.)61CSAH ) SB ISLII AA 13.17 M M 4A. PN61) (CSAH ) SB (SL)) ..W STA. 42,00.67 T04A 33.65.& (CSAR) NO ISR)) MTD STA 23.95.37 ICA H 7158 NS(SR)I STA. 44.936) TO NN8<9(CR STA W.9).32TO VA. .97 159 MSTA A156 ES RI) STA. 3E.%%1O5T0. 3iNO.55(CR 158 FB SRI) VA. 32,94.96 IS LER)) STA 3E.W.lI RISA. J2.%.%IG t%EBfERII STA. 54. 16.90 T04A 54.598(GLH) AS (MH STA. HwS%B STA55QS%(CSAH)NB(WLD STA. M.14,NM SA 2,.6.73 (CNH) SB (WRIT STA M.6)3T0 ST1.6S.1) 57(CLX) SB IWR)I STA %.6.1) TO M. 14.)).33 RSAH 7 N DLII STA 14,7733 TO STA 1N66.I7(CLH 758(SLII 90. 23.9S. 3M STA. i4Q1. IGEN) NO INTI STA. 2,.47.54 N.125.W.)9(CSW 1 NB ILL) STA .40.83% TO STA 40.91.38 ICA t%WB(EL31 STA. 40�W.W NI STA 4 9J%(CA ISI INS 1111) VA3 A8.95TO5TA 31.43.111@ IMEB(ERI) STA.30.W.COMSTA 3 &I 158E11 `FOW .SAATYCAL.CTroN )OVE 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: CC: FROM: SUBJECT: DATE: Mayor and Council Members 0 David Berkowitz, Director of Public Works/City Engineer/Interim City��'�' Administrator Kameron Kytonen, Natural Resources Technician Tree Ordinance/Policy Proposal -Engineering October 22, 2024 INTRODUCTION Nature Preserve Commissioner Jonathan Gwinn drafted a proposal with some ideas for advocating developers to protect more trees. It also outlined tree replacement/tree fund requirements for potential scenarios that meet a tree removal threshold. This was initially brought to the March 28, 2023 City Council workshop for discussion. Since that time, City staff has worked with Mr. Gwinn to update the proposal and it was brought back to the August 27, 2024 workshop for additional discussion. DISCUSSION There has been another round of discussions and meetings with staff to update the initial proposal even more. The updates made have greatly simplified the proposal and lessened the potential financial penalty for developers if it is adopted. The new proposal is outlined in the attached narrative. ACTION REQUIRED The City Council is requested to listen to and discuss the latest proposal. Respectfully submitted, /KameronKen v Natural Resources Technician Attach: Updated Narrative of Tree Ordinance/Policy Proposal I/ Gwinn Tree Proposal NARRATIVE OF TREE ORDINANCE/POLICY PROPOSAL Andover's Vision Statement Andover, a safe, growing community in which to live and work which enhances the quality of its citizens' lives through recreational opportunity, quiet neighborhoods, civic involvement, fiscal and environmental stewardship. 10.22.24 Gwinn Tree Proposal HERE IS CURRENT CODE 10.22.24 Tree Planting Required: On all lots of record, for new construction it shall be the responsibility of the general contractor, builder or owner to plant in the front yard a minimum of two (2) trees or one tree per fifty feet (50') of lot width as measured at the front property line, whichever is greater, up to a maximum of four (4) trees. Said trees shall be alive and 1 See also section 9-1-5 of this title and subsections 11-3-30 and 11-4-8A3 and B3 of this code. disease free, planted per citytree planting specifications, at least one and three-fourths inches (13/4") in diameter and six feet (6) in height as measured from ground level after the trees are planted. Said trees shall be properly planted between the months of April and October, and tree species and/or type shall be on the list determined by the city. Tree Survival: The trees shall not be accepted as meeting the tree planting requirements of this section until verified by the city that the planted trees survive one full "winter season", which for the purpose of this chapter is the period October 31 through May 31. Exemptions: The requirements in this subsection shall not apply if the minimum number of trees prescribed by this subsection are existing, healthy and preserved in the front yard of the property and the trees meet or exceed the requirements listed above. HERE IS NEW PROPOSED CODE Tree Planting Required: On all lots of record, for new construction it shall be the responsibility of the general contractor, builder or owner to plant four (4) trees. There shall be in the front yard a minimum of two (2) trees or one tree per fifty feet (50') of lot width as measured at the front property line, whichever is greater, up to a maximum of four (4) trees. OTHER KEY NOTES The exemption (for eligible preserved trees) WILL come into playfor front yard trees only. The other details in the existing code will be the same. • The "Tree Fund" proposed in earlier versions doesn't come into play. • F., ;. 1 1 �.. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: David Berkowitz, Director of Public Works/City Engineer/Interim City Administrator FROM: Jason Law, Assistant City Engineer SUBJECT: Discuss Potential Eldorado Street Right of Way Vacation - Engineering DATE: October 22, 2024 INTRODUCTION In the summer of 2025, the streets in the Meadows of Round Lake are proposed to be reconstructed. There is an existing cul de sac on the south end of Eldorado Street included with this project. When platted, right of way was dedicated south of the cul de sac on Eldorado Street for the potential extension of Eldorado Street south to Bunker Lake Boulevard. The right of way ends at the south plat line, approximately 650' north of Bunker Lake Boulevard. Extension of Eldorado Street to Bunker Lake Boulevard is not feasible as the entire stretch south of the Meadows of Round Lake plat line is wetland and floodplain. There are two existing parcels adjacent to and south of the Eldorado Street cul de sac that separately appear to be unbuildable due to limited upland and floodplain impacts. DISCUSSION As future extension of Eldorado Street south of the plat line is not feasible, the City Council is requested to discuss the potential of vacating the existing right of way south of the reconstructed cul de sac location. Any vacated right of way would be dedicated to the existing parcels to the east and the west split along the right of way centerline. If vacated and the two parcels combined, there is sufficient upland for a buildable lot. If combined and with some potential wetland and floodplain fill and mitigation, there may be the potential to create two buildable lots. ACTION REQUIRED The City Council is requested to discuss vacating the Eldorado Street right of way south of the reconstructed cul de sac. If there is City Council support for vacating, staff would reach out to the impacted property owners to determine their interest in this process. espectfully submitted, Jason J. Law, P.E. Assistant City Engineer Attach: Location Map ANPqyR Eldorado Street Date Created: October 15, 2024 Disclaimer. The provider makes no representation or warranties with respect to the reuse of this data. NDOVE 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 Councilmembers -� David D. Berkowitz, Interim City Administrator Lee Brezinka, Finance Manager September 2024 Community Center Update October 22, 2024 0 INTRODUCTION Attached for Council review is the Andover Community Center (ACC) Budget Summary Report for Budget Year 2023 and Budget Year 2024. The reports reflect activity through September 2024 with comparative data with September 2023. 2024 Financials 2024 Revenues to date are on par with 2023, no surprises. 2024 revenues are expected to be comparable to 2023, a reduction in Miscellaneous Revenues is reflected in the 2024 budget as reimbursements from the YMCA for shared maintenance/construction will be less in 2024, but the 2024 Miscellaneous Revenue actual is ahead of 2023 due to an $80,238.08 donation from the Andover Huskies Youth Hockey Association (AHYHA) for a new sound system. The 2024 expenses are in line with 2023, although you will see some payment timing impacts with operating expenses and a limited capital outlay budget for the golf simulator in 2024. Salaries are expected to be consistent as ACC has been able to maintain full staffing. Looking ahead it is anticipated that 2024 activities will be comparable to the previous year as we proceed through the year. The 2023 Capital Outlay line item is for a high volume/output water heater replacement and the addition of a water softener. This project was completed in 2023. NOVEMBER/DECEMBER 2024 FACILITY UPDATE Please refer to the attached ACC Facility Update for Major Events and monthly Walking Track activity. Fall programs and our main user groups are back, looking at the event calendar you will see staff are planning for a busy winter season. Also attached is a birthday party activity report for 2023 and 2024 YTD. PROGRAMS/ACTIVITIES UPDATE Current Maintenance Projects: - Just wrapped up the final details of the new roof under the new dehumidification unit in the Ice Arena. - The golf simulator is open for rentals. - New bleachers are scheduled to be installed in the fieldhouse in November 2024. CONCESSIONS The Crooked Lake Creamery partnership continues to be successful. ACTION REQUESTED Informational. The Council is requested to review and receive a staff presentation on the attached reports. Respectfully submitted, �4 O �,/�y Lee Brezinka Attachments' CITY OF ANDOVER Community Center Budget Summary Totals Budget Year 2024 2023 2024 REVENUES Budget Sep YTD % Bud Audit Budget Sep YTD % Bud Charges for services Ice Rental $ 794,000 $ 463,672 58% $ 865,994 $ 809,000 $ 542,146 67% Turf Rental 25,000 19,971 n/a 19,971 22,000 18,116 82% Track 3,000 5,580 n/a 7,761 5,000 3,873 n/a Fieldhouse Rental 255,000 230,906 91% 332,579 265,000 265,755 100% Proshop 13,000 10,389 80% 16,926 14,000 11,863 85% Vending 16,000 13,369 84% 17,782 18,000 10,863 60% Advertising 75,000 99,484 133% 115,053 80,000 92,466 116% Total Charges for services 1,181,000 843,371 71% 1,376,066 1,213,000 945,082 78% Miscellaneous 389,268 195,544 50% 309,954 268,361 202,059 75% Total revenues 1,570,268 1,038,915 66% 1,686,020 1,481,361 1,147,141 77% 2023 2024 EXPENDITURES Budget Sep YTD %Bud Audit Budget Sep YTD %Bud Current: Salaries & benefits 875,369 608,940 70% 861,874 892,245 659,096 74% Departmental 91,850 86,104 94% 105,378 94,968 81,393 86% Operating 679,647 421,881 62% 612,579 717,967 410,669 57% Professional services 248,725 133,245 54% 201,418 339,388 142,277 42% Capital outlay 374,601 0% 176,597 35,023 35,023 100% Current 2,270,192 1,250,170 55% 1,957,846 2,079,591 1,328,458 640/. Revenue over (under) expense (699,924) (211,255) 30% (271,826) (598,230) (181,317) 30% Other financing sources (uses) General Property Tax Levy 155,000 81,700 53% 154,097 155,000 80,981 52% Investment income 3,000 4,973 u/a 57,713 3,000 13,070 436% Rental/Lease Pymt 638,000 639,780 100% 635,884 638,000 643,886 101% Transfers out (300,000) (300,000) 100% (300,000) (300,000) (300,000) 100% Total financing sources (uses) 496,000 426,453 86% 547,694 496,000 437,937 88% Vet increase (decrease) in fund balance $ (203,924) $ 215,198 -106% $ 275,868 $ (102,230) $ 256,620 -251°r CITY OF ANDOVER MINNESOTA Andover Community Center I YMCA Historical Comparison Debt Service Payments 2012C GO Abatement Bonds (P +1) 2016 1,216,506 2017 1,213,731 2018 1,211,481 2019 1,208,931 2020 2021 2022 2023 2024 2024 $ 1,213,000 Actual 2019A GO Abatement Bonds (P +I) Actual Actual Actual Actual Actual Actual Actual Budget Sep YTD Revenues: 1,106,900 1,107,650 1,107,650 $ 1,216,506 $ 1,213,731 $ 1,211,481 $ 1,208,931 $ 1,806,131 Charges for services 2,032,356 $ 2,323,706 $ 2,316,181 $ 2,320,650 $ 2,320,650 Property Tax Levy Ice Rental $ 405,990 $ 392,828 $ 435,716 $ 442,995 $ 361,796 $ 823,856 $ 794,232 $ 865,994 $ 809,000 $ 542,146 Turf Rental - $ - $ - $ 974,628 - $ 973,650 - 3,782 18,553 19,971 22,000 18,116 Track - - - - 1,014,065 301 3,950 5,871 7,761 5,000 3,873 Fieldhouse Rental 199,286 215,089 218,667 220,225 133,126 220,527 287,696 332,579 265,000 265,755 Proshop 9,412 $ 9,247 $ 8,606 $ 9,680 $ 4,394 9,606 11,978 16,926 14,000 11,863 Vending 8,588 9,182 7,470 8,427 6,148 7,763 20,978 17,782 18,000 10,863 Advertising 26,450 38,819 34,000 40,850 8,000 84,700 99,436 115,053 80,000 92,466 Charges for services 649,726 665,165 704,459 722,177 513,765 1,154,184 1,238,744 1,376,066 1,213,000 945,082 Miscellaneous 136,552 136,149 142,768 131,386 110,781 134,072 239,090 309,954 268,361 202,059 Total revenues 786,278 801,314 847,227 853,563 624,546 1,288,256 1,477,834 1,686,020 1,481,361 1,147,141 Expenditures: Current: Salaries & benefits 451,332 481,926 501,108 533,044 503,842 692,742 809,007 861,874 892,245 659,096 Departmental 77,945 65,612 76,448 66,570 74,809 82,655 96,433 105,378 94,968 81,393 Operating 364,935 364,242 352,067 330,084 345,588 515,308 597,663 612,579 717,967 410,669 Professional services 106,381 125,034 104,076 77,818 129,261 85,130 179,690 201,418 339,388 142,277 Capital outlay 47,859 4,900 11,442 39,888 100,000 37,358 176,597 35,023 35,023 Current 1,048,452 1,041,714 1,045,141 1,047,404 1,153,500 1,375,835 1,720,151 1,957,846 2,079,591 1,328,458 Revenue over under expenditures 262,174 240,400 197,914 193,841 528,954 87,579 242,317 271,826 598230 181,317 Other financing sources (uses) General Property Tax Levy - - - - - 154,534 154,614 154,097 155,000 80,981 Investment income 2,190 2,779 5,780 16,107 6,793 2,817 (21,173) 57,713 3,000 13,070 Rental I Lease Pymt 640,303 641,691 637,150 636,803 635,629 635,026 624,508 635,884 638,000 643,886 Transfers out (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) Total financing sources (uses) 342,493 344,470 342,930 352,910 342,422 492,377 457,949 547,694 496,000 437,937 Net increase (decrease) in fund balance 80,319 104,070 145,016 159,069 (186,532) 404,798 215,632 275,868 (102,230) 256,620 Prior Period Adjustment - - - - - 125,200 - - - - Fund balance(deficit)- January 1 56,140 136,459 240,529 385,545 544,614 358,082 $88,080 1,103,712 1,379,580 1,379,580 Fund balance(deficit)- December 31 $ 136,459 $ 240,529 $ 385,545 $ 544,614 $ 358,082 $ 888,080 $ 1,103,712 $ 1,379,580 $ 1,277,350 $ 1,636,200 Fund Balance Detail: F3-Replac Res for Common Space $ 154,449 $ 179,283 $ 173,560 $ 200,606 $ 190,067 $ 216,790 $ 225,117 $ 78,277 $ 103,277 $ 103,277 FB - Unassigned (17,990) 61,246 211,985 344,008 168,015 671,290 878,595 1,301,303 1,174,073 1,532,923 $ 136,459 $ 240 529 $ 385,545 $ 544,614 $ 358,082 $ 888,080 $ 1103,712 $ 1,379,580 $ 1,277,350 $ 1,636,200 Debt Service Payments 2012C GO Abatement Bonds (P +1) $ 1,216,506 $ 1,213,731 $ 1,211,481 $ 1,208,931 $ 1,215,981 $ 1,212,631 $ 1,213,931 $ 1,209,281 $ 1,213,000 $ 1,213,000 2019A GO Abatement Bonds (P +I) - 590,150 819,725 1,109,775 1,106,900 1,107,650 1,107,650 $ 1,216,506 $ 1,213,731 $ 1,211,481 $ 1,208,931 $ 1,806,131 $ 2,032,356 $ 2,323,706 $ 2,316,181 $ 2,320,650 $ 2,320,650 Property Tax Levy 2012C GO Abatement Bonds $ 977,332 $ 974,418 $ 972,055 $ 969,378 $ 976,780 $ 973,263 $ 974,628 $ 969,745 $ 973,650 $ 973,650 2019A GO Abatement Bonds - - - - 1,001,090 976,966 1,014,065 1,028,782 1,028,783 1,028,783 Community Center Operations - - 155,000 155,000 155,000 155,000 155,000 $ 977,332 $ 974,418 $ 972,055 $ 969.378 $ 1977,870 $ 2,105,229 $ 2,143,693 _L 2,153,527 _L 2,157,433 $ 2,157,433 ANDo VER COMMUNITY CENTER NOV — DEC, 2024 Nov 5 — Election Nov 5 — FLEX Hockey, MN Mite Tournament Nov 10 — MN Premiere Volleyball Tryouts Nov 19 — AHS Girls Hockey vs Edina Nov 21— AHS Boys Hockey vs Rogers Nov 23 — AHS Girls Hockey vs Blaine Nov 28 — CLOSED Nov 30 — Tree Lighting Dec 6 — AHS Boys Hockey vs Moorhead Dec 7 — AHS Girls Hockey vs. Centennial Dec 7 — Carousel Craft Sale Dec 10 — AHS Boys Hockey vs. Elk River Dec 12 — AHS Boys Hockey vs. Benilde/SM Dec 13 — AHS Girls Hockey vs. Warroad Dec 14 — AHS Boys Hockey vs Wayzata Dec 14 — Sports Card & Collectables Show Dec 20 — AHS Girls Hockey vs. Hill -Murray Dec 25 — CLOSED Track check in is required, Monday—Friday, 6:30am-4:30pm. Numbers below reflect those checked in during these times. Jan — 2342 Feb — 1837 March — 1510 April — 1427 May — 960 June — 714 July — 689 Aug — 533 Sept — 424 Oct — Nov — Dec — ACC Usage Statistics - Account Type 1/1/2024 to 12/31/2024 No Time restrictions All Days of the Week All Facilites 18150 ACC $58750 $12,877.00 $1,094.16 $14,558.66 Usage Statistics - Account Type 1/1/2023 to 12/31/2023 No Time restrictions All Days of the Week All Facilites iAccI ountTVpe Hours % Hours Fee Other Tax .. .r Mi Courts 13550 86306"/6 $8750 $10,228.00 $744.83 $11,06033 83505% Ice 17.00 10.828% $545.50 $1,036.00 $112.69 $1,694.19 12.791% Turf Rental 450 2.866% $0.00 $458A0 $32.64 $490.64 3.704% 157.00 $633.00 $11,722.00 $890.16 $13,245.16 l I Q Generated By FnnlySport on 10/9/2024 2:03 PM Page 1 of 1 Type Hours % Hours Fee Other Tax TotalAccount Courts 143.00 78.788% $58750 $9,351.00 $807.64 $10,746.14 73.813% Ice 23.50 12.948% $0.00 $2,192.00 $178.11 $2,3y?0.11 16.280% Turf Rental 15.00 8.264% $0.00 $1,334.00 $108.41 $1,442.41 9.908% 18150 ACC $58750 $12,877.00 $1,094.16 $14,558.66 Usage Statistics - Account Type 1/1/2023 to 12/31/2023 No Time restrictions All Days of the Week All Facilites iAccI ountTVpe Hours % Hours Fee Other Tax .. .r Mi Courts 13550 86306"/6 $8750 $10,228.00 $744.83 $11,06033 83505% Ice 17.00 10.828% $545.50 $1,036.00 $112.69 $1,694.19 12.791% Turf Rental 450 2.866% $0.00 $458A0 $32.64 $490.64 3.704% 157.00 $633.00 $11,722.00 $890.16 $13,245.16 l I Q Generated By FnnlySport on 10/9/2024 2:03 PM Page 1 of 1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers CC: David D. Berkowitz, Interim City Administrator -M3 FROM: Lee Brezinka, Finance Manager SUBJECT: 2025 Budget Development Progress Update/Discussion DATE: October 22, 2025 INTRODUCTION The Council has had several reviews of the 2025 Proposed General Fund Budget that will be supported by the 2025 Tax Levy. The Council did adopt at the September 3rd regular Council meeting a Preliminary 2025 Property Tax Levy & General Fund Budget. The Preliminary 2025 Budget proposes a total property tax levy of $20,404,084: $12,298,182 (60.28%) operational levy, $4,881,034 (23.92%) debt service levy, and $3,224,868 (15.80%) other levies. The 2025 Proposed Property Tax Levy is proposed to increase the City's gross tax levy by 12.75%. That levy will be applied to the City's growing tax base and will reflect a 12.61% increase in the current City tax rate. The focus of the 2025 Budget and Levy is to address inflationary items, capital replacements, an infusion of funds into the street improvement 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, 2024. DISCUSSION The following are the 2025 Budget Development guidelines adopted at the May 7h 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: Anoka County Assessor estimated taxable market value figures for the City of Andover are based on numbers presented at the Board of Review meeting reflecting only a 0.40 % increase in total taxable market value for 2025. The 2024 increase was 2.93%. 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2025 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 2024 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 2024 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. (Updated Fund Balance analysis is attached). 3) A commitment to limit the 2025 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 2024 debt levy was below the guideline. The 25% guideline for 2025 will be attained via the structured management of the current long-term debt. An equipment certificate is contemplated for 2024, and street reconstruction bonds planned in 2025. 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 2025-2029 Capital Improvement Plan (CIP) development process. This is covered in more detail with 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 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 StaffLeadership 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, 2023, 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. Staffing Focus Consistent with the 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. 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 past realignments added significant new responsibilities and pay adjustments were made and continue to carry forward into 2024. Administration did receive a new stajjing request from the Fire Department for the 2025 budget. Deadline for submission was July I sr Fire Department - New requests are for an Administrative Assistant and an additional Fire Inspector/Firefighter for the 2025 budget. The primary focus is to help meet acceptable response times with the Duty Crew and Paid -on -Call model. Administration and Fire are closely monitoring the progress of the Duty Crew model, success is crucial as duty crew alternatives such as full-time firefighters are expensive. Prior Fire Department staffing requests have outlined 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 has not recommended the full-time firefighting model but does want the Council to be aware of the cost of that model. The additional Fire Inspector/Firefighter for the 2025 budget is not recommended at this time by Administration as the City is currently undertaking a Fire Services Evaluation by Fitch & Associates which is anticipated to be complete in early 2025. It is anticipated that recommendations in the final report will be key toward future new Firefighter hires. Relative to the Administrative Assistant request, Human Resources/Administration is evaluating options for additional administrative support service options for the Fire Department within the current City staffing compliment. Personnel Related Implications To date the following are the other projected issues facing personnel related expenses: 1. 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 will present the findings at the workshop under a separate agenda item and will seek Council direction on how to proceed based on the findings. Administration has included a placeholder in the Human Resources Budget to address market competitiveness and will review in more detail at the meeting as well. The 2024 budget focus was on front-line workers, the 2025 budget is focus is on mid -managers and department heads. The current Public Works Union contract expires December 31, 2025. A two-year contract was achieved in 2024, and the current Public Works Union Contract (2024-2025) was approved at the October 3, 2024, City Council meeting. That approval provided for a $1.75 per hour market rate adjustment for 2024 and a 3% COLA is provided for 2024 and 2025.. For non -bargaining employees, Administration is carrying a placeholder for 2025 COLA. Council direction will be sought on a 2025 COLA for non -bargaining employees. 2. A midyear review of the employee health plan for the 2025 Budget was conducted with our broker on July 9th, and an increase in the renewal rates is forecasted. The marketing of the group to various insurance carriers is an option, but as more information does come available a decision will be made as the current health insurance contract does contain a rate increase cap. For the 2024 budget, Administration at the November 8, 2023, Council meeting, recommended switching from the Health Partners Open Access program to MEDICA with three high -deductible plan designs offered to the employees. The health plan is offered with higher deductibles ($6,900 single and $13,800 family) and is stacked with an HRA (Health Reimbursement Arrangement). The HRA was originally funded utilizing premium savings that were achieved from by continued renewal of higher deductible plans. 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 by 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 as part of the marketing of the health insurance plans, is in place for 2024 and proposed for 2025. Administration is carrying an employee health insurance increase placeholder in the proposed 2025 budget. 3. Fire Services Studv The City of Andover Strategic Plan identifies the following as a major short-term initiative, "Evaluate staffing and level of service for Fire, EMS, and Sheriff's Office to provide effective fire and rescue response. " In response, the City initiated a Request For Proposal (RFP) process seeking an independent firm that specializes in reviewing Fire and EMS service. Proposals were due on May 17th. After the review of nine submitted proposals, three firms were interviewed, and Fitch and Associates was recommended to the Council for approval at the June 18`h City Council meeting. Fitch & Associates did start the study process in late June with data requests and onsite in July. 4. Andover Fire Relief Association The City of Andover Strategic Plan identifies the following as a major short-term initiative, "Implement actions related to staff retention and attraction in order to keep the City market competitive (compensation, benefits, etc). " At the February workshop, the Council met with the Andover Firefighters Relief Association where a presentation along with stories and personal impacts behind the numbers was provided by members of the Relief Board. Council direction from that meeting was for Administration to gather additional data and for the Council to discuss a Fire Relief contribution and Firefighter pay at a future workshop, City Administration did provide to -date research, shared conversations with other communities, and provided analysis.at the May 28' Council workshop. The outcome of the May 28th workshop was the City Council while recognizing a contribution is not mandatory also recognizes that a municipal contribution can contribute to the City achieving firefighter recruitment goals, long-term retention of firefighters and to assist in fending off going to full-time firefighters. The City Council did adopt at the June 4th regular council meeting a process and formula for the current year 2024 and future year's contribution to the Andover Firefighters Relief Association. The City formula for a municipal contribution is based on service credits as determined by the Andover Fire Department and the process will be triggered after the preceding years' service credits are certified to the Andover Firefighters Relief Association, no later than March 31 st of each year. Payment made after a 60 -day appeal of service credit process. The formula established is as follows: For the 2024 contribution the City has established a baseline of $125/per service credit. The municipal contribution will be calculated by multiplying the baseline per service credit by the total number of months certified per active firefighter. In future years, the baseline per service credit will be adjusted by the cost -of -living adjustment (COLA) percent increase provided to the City non -bargaining employees for the budget year payment is made. Contractual Departments Consistent with the strategic plan, the following goal applies to contractual departments: • Evaluate staffing and level of service for Fire, EMS, and Sheriffs Office to provide effective fire and rescue response. • Continue to enter into collaborative agreements and partnerships when mutually beneficial. 1. The City Attorney 2024 contract included a 2% increase over the 2023 contract. The proposed 2025 budget is carrying a placeholder increase for the attorneys 2025 contract. 2. The Anoka County Assessor contract was up for renewal in 2023 and was approved going into the 2024 budget. The County Assessor is on a five-year contract renewal consistent with past renewals. Efficiencies brought about by technological investments have assisted in keeping the contract pricing consistent and affordable. No increase is proposed for 2025. 3. Each year the City Council approves the subsequent years (2025) law enforcement contract with the Anoka County Sheriff s Office as part of the annual budget process. The current 2024 City of Andover Law Enforcement contract (a status quo contract to 2023) was approved at the September 19, 2023, City Council meeting with expenditures budgeted at $3,739,849, 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. 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. The Crime Watch Coordinator position historically covered 50% by Andover was moved to be under the Sheriff service umbrella with the 2024 contract. 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. As you may recall, 2022-2023 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 for school year 2023-2024. In response, the City and the Sheriff s Office addressed this in the 2024 Law Enforcement Contract by adding language in the contract to address the School Liaison Officers by adding the following language to the 2024 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." That language will not be needed for the proposed 2025 contract, as there was a push for the legislature to provide more clarity to the new law at the most recent legislative session (2023-2024) and as more acceptable language was approved by the Legislature and Governor, in response the School Liaison Officers were placed back into Andover High School and Oak View Middle School in February of 2024. Discussions with the Anoka County Sheriff for 2025 were again for a status quo contract. Those discussions yielded a 5.27% increase in the contract expenditures budgeted at $3,936,982, offset by a Police State Aid revenue budget of $126,192 and School Liaison revenue budget of $147,000 reflecting a net tax levy impact of $3,663,790. The primary driver of cost increase for the 2025 contract proposal is deputy salary increases to remain competitive with the Metro Area. The 2025 Sheriffs contract was approved at the July 2, 2024, City Council meeting after a presentation by Sheriff Brad Wise. Council Memberships and Donations/Contributions The following memberships/contributions are in the 2025 proposed budget: ■ North Metro Mayors Association $14,261 (GF) • Metro Cities $10,027 (GF) • Mediation Services $ 6,628 (GF) • YMCA — Water Safety Program $ 9,500 (GF) • Alexandra House $24,500 ($15,000 GF & $9,500 CG) • Youth First (Program Funding) $16,000 ($12,000 GF & $4,000 CG) • NW Anoka Co. Community Consortium - JPA $10,000 (GF) • Teen Center Funding (YMCA) $26,000 ($5,600 GF & $20,400 CG) • Family of Promise $ 4,000 (CG) ■ Lee Carlson Central Center for Family Resources $ 2,000 (GF) ■ Senior High Parties $ 2,000 (CG) ■ Stepping Stone $ 2,000 (CG) ■ Hope for Youth $ 2,000 (CG) • Andover Senior Center $ 2,500 (GF) Some organizations are funded via the General Fund (GF), and those organizations 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 2025. Youth Programming — Andover Community Center: Regarding Youth Programming, the City of Andover Strategic Plan identifies the following as major short-term initiatives: • Develop and implement additional youth activity programming at the Andover Community Center. • Continue to enter into collaborative agreements and partnerships when mutually beneficial. In response, Administration and Community Center staff are working with Youth First and the YMCA to develop a more structured after school program at the ACC. Youth First with their new Executive Director taking the lead are formulating a program that can work with grant dollars Youth First has been awarded and integrate a program where Opioid Settlement dollars or Public Safety Aid could be leveraged and to utilize existing City funding targeted toward youth programming. A program titled "The Andover Community Engagement Model (A.C.E.)" is being fine-tuned for this fall if funding can be secured. Administration will provide more information at the meeting. Council input will be sought regarding implementing a program and the potential utilization of Opioid Settlement funds to assist with starting up the program at the ACC. To date, the City has received approximately $77,000 to date in settlementfunds and anticipates receiving an additional $75,000 in future years_ Capital Proiects Levy Consistent with the new strategic plan, the following goal applies to capital projects: • Review and update street capital improvement plan, including funding and implementation. • Prioritize the timely replacement of equipment and commitment to necessary maintenance of equipment and municipal facilities. • Explore, identify gaps, and strengthen critical infrastructure. The 2024 Capital Projects Levy Budget specifically designates $2,434,438 of the general tax levy to capital projects and equipment needs relating to Capital Project Outlay ($300,000), Road and Bridge ($1,651,822), Pedestrian Trail Maintenance ($112,616), 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. The State of Minnesota funding has gone away, down to $0.00 in 2017, and has remained 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. In 2021, as part of the 2022 budget process, Administration has had discussions with the Council regarding the use of debt service levy and the Permanent Improvement Revolving (PIR) Fund fund balance to address immediate street maintenance needs in the community based on Engineering analysis of the street infrastructure. The Council did approve the 2022 Street Reconstruction Bonds infusing $7.33m into the Road & Bridge program to focus on mill and overlays and reclaims of city streets. For the 2025 budget development, detail analysis including a review of conditions and needs of the city street system to date was presented to and discussed by the City Council throughout this spring and summer, this review has shown a financial need of approximately $70,000,000 over the next 8 years to bring all City streets to acceptable levels. Through this process the City Council reviewed the City of Andover Road Rating process, forecasted costs, proposed improvement methods (mill & overlay, full street reclaim, or full street reconstruction), potential revenue sources and potential future corresponding property tax impacts. The City Council rejected options that included increasing assessment rates or using franchise fees. The City Council chose to integrate bonding with the current assessment rates, current funding sources, pursuit of grant options, and an increased property tax contribution starting in 2025. The 2024 Road & Bridge levy reflected a 2.02% increase to $1,651,822, that increase followed previous Council guidelines capturing market value increases to dedicate to roads. Administration is proposing a 45.29% increase ($748,178) to $2,400,000 for the 2025 levy to help address the new Street Improvement Program. • Pedestrian Trail Maintenance The 2020 City of Andover Pedestrian Trail Maintenance levy was $104,040. The 2021, 2022, 2023 & 2024 budgets each included a 2% increase leading to a $112,616 levy for 2024. Administration is again proposing a 2% increase ($2,252) to $114,868 for the 2025 levy. • Park Improvements / Parks Repair & Replacement 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 are 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, to $120,000 for 2020 & 2021, $130,000 for 2022 and $145,000 for 2023; the Parks Project levy has remained the same at $15,000 since 2015. For 2024, per Council direction after a Joint Meeting with the Park and Recreation Commission as part of the 2024 budget development process, there was a $90,000 adjustment proposed to these levies, the Parks Repair/Replacement Items levy was set at $235, 000 and the Parks Project levy remained at $15, 000. No change is recommended for the 2025 budget. Capital 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 2022 levy & 2023 levy was $275,000. An additional $25,000 increase to $300,000 was done with the 2024 levy to continue to meet the needs of the CIP. No change is recommended for the 2025 budget. 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. This levy was increased to $355,000 for the 2019 budget to help address the 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 at that level into the future to address additional facility repairs. The preliminary 2025 levy does not recommend any adjustment to the Facility Maintenance levy. $355, 000 is again proposed for the 2025 levy. Debt Service Lew 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 have completed reviews to see if any refinancing opportunities are available at this time, currently there are none; we will then continue to monitor refunding opportunities, as markets move quickly, and calculate potential savings for each issue that may meet parameters which may generate savings. The proposed 2025 Debt Service levy is as follows: • 2012C Taxable G.O. Abatement Bonds $ 969,824 Final levy year 2031 • 2018A CIP Bonds $ 617,257 Final levy year 2043 • 2019A GO Abatement Bonds $1,018,100 Final levy year 2039 • 2021A GO Equipment Certificates $ 176,715 Final levy year 2025 • 2021A GO Street Reconstruction $ 649,138 Final levy year 2029 • 2024 GO Equipment Certificate $ 450,000 Final levy year 2027 • 2025 GO Street Reconstruction Bonds $1,000,000 Est. - Final levy year 2034 Total 4 881 034 ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. Respectfully submitt , ti ee Brezinka Attachments '/ CITY OF ANDOVER General Fund Revenue R Expense Summary EXPENDITURES Actual Actual Actual Actual Actual Budget" Estimate Requested" Budget Change (") General Government 2019 2020 2021 2022 2023 2024 2024 2025 $ % REVENUES 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,586,108 6,906,877 442,723 6.85% Property Taxes $ 8,864,720 $ 9,303,235 $ 9,527,670 $ 9,974,141 $ 10,663,259 $ 11,621,126 $ 11,621,126 $ 12,188,182 567,056 4.88% License and Permits 855,831 892,277 891,762 972,878 854,738 617,600 722,175 668,850 51,250 8.30% Intergovernmental Revenues 822,129 861,178 939,174 963,290 977,028 868,657 834,259 911,625 42,968 4.95% Charges for Current Services 1,133,160 1,070,788 1,036,850 1,295,429 1,447,507 897,610 1,042,220 966,910 69,300 7.72% Fines and Forfeits 62,349 47,630 53,747 55,983 70,683 50,500 50,500 50,500 0 0.00% Interest Income 208,957 148,974 (15,183) (189,494) 377,355 75,000 100,000 100,000 25,000 33.33% Miscellaneous Revenue 192,058 172,174 167,397 188,395 185,646 154,800 158,165 155,300 500 0.32% Transfers 188,008 190,688 212,031 197,081 228,772 221,246 221,246 177,180 (44,066) -19.92° TOTAL REVENUES 12,327,212 12,686,944 12 813,448 13,457,703 14,804,988 14 506,539 14,749,691 15,218 547 712,008 EXPENDITURES General Government 2,843,957 2,906,325 3,020,260 3,222,596 3,290,966 3,985,287 3,995,501 4,132,966 147,679 3.71% Public Safety 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,586,108 6,906,877 442,723 6.85% Public Works 3,148,743 3,314,542 3,522,626 3,624,481 3,904,812 4,430,572 4,450,572 4,605,734 175,162 3.95° Other 15,001 1,012,778 766,109 567,396 223,436 95,600 95,600 96,600 1,000 1.05% TOTAL EXPENDITURES 11,099,494 12,395,879 12,841,424 13119,831 13,219,841 14,975,613 15,127781 15,742,177 766,564 5.12% UNDER(OVER)BUDGET $ 1,227718 $ 291,065 $ 27,976 $ 337,872 $ 1,585,147 $ 469,074 $ 378,090 $ 523630 $ 54,556 CITY OF ANDOVER General Fund - Expenditure Budget Summary Totals - By Department Budget Year 2025 GRAND TOTAL $ 11,099,494 $ 12,395,879 $ 12,841,424 $ 13,119,831 $ 13,219,841 $ 14,975,613 $ 15,127,781 $ 15,742,177 766,564 5.12% Actual Actual Actual Actual Actual Budget* Estimate Requested* Change (*) 2019 2020 2021 2022 2023 2024 2024 2025 $ GENERAL GOVERNMENT Mayor and Council $ 99,001 $ 95,519 $ 95,658 $ 95,366 $ 99,860 $ 112,042 $ 105,042 $ 111,874 (168) -0.15% Administration 211,898 187,758 229,314 245,222 278,092 303,714 301,114 321,016 17,302 5.70% Newsletter 24,413 22,156 22,945 24,631 27,733 36,000 32,000 36,000 0 0.00% Human Resources 15,842 16,181 20,836 19,905 21,172 134,494 134,494 99,745 (34,749) -25.84% Attorney 191,782 195,721 199,809 206,399 207,922 223,486 221,000 227,836 4,350 1.95% City Clerk 160,184 166,221 175,177 184,318 193,217 204,009 204,009 213,523 9,514 4.66% Elections 20,452 91,643 20,260 75,115 28,002 90,906 90,906 92,188 1,282 1.41% Finance 280,199 294,501 307,009 320,729 335,992 360,343 360,343 386,940 26,597 7.38% Assessing 149,033 154,482 128,829 131,097 136,705 161,000 161,000 161,000 0 0.00% Information Services 169,827 187,703 185,642 226,588 235,842 249,184 249,184 278,287 29,103 11.68% Planning & Zoning 412,282 453,133 491,395 490,576 473,193 570,506 570,506 598,226. 27,720 4.86% Engineering 561,642 566,224 594,720 649,664 703,515 755,758 757,558 793,370 37,612 4.98% Facility Management 547,402 475,083 548,666 552,986 549,721 783,845 808,345 812,961 29,116 3.71% Total General Gov 2,843,957 2,906,325 3,020,260 3,222,596 3,290,966 3,9859287 3,995,501 4,132,966 147,679 3.71% PUBLICSAFETY Police Protection 3,183,610 3,114,623 3,287,046 3,261,423 3,347,315 3,739,849 3,739,849 3,936,982 197,133 5.27% Fire Protection 1,391,252 1,508,854 1,706,876 1,961,915 1,926,998 2,120,451 2,247,405 2,329,809 209,358 9.87% Protective Inspection 493,955 519,183 519,787 464,560 501,561 557,917 557,917 589,327 31,410 5.63% Emergency Management 18,608 17,227 15,203 12,296 19,958 34,987 34,987 39,809 4,822 13.78% Animal Control 4,368 2,347 3,517 5,164 4,795 10,950 5,950 10,950 0 0.000% Total Public Safety 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,586,108 6,906,877 442,723 6.85% PUBLIC WORKS Streets and Highways 615,450 686,978 804,392 788,330 899,542 994,486 994,486 1,060,142 65,656 6.60% Snow and Ice Removal 703,647 496,668 540,226 752,396 771,857 901,461 901,461 927,053 25,592 2.84% Street Signs 202,996 257,281 196,782 194,276 169,472 221,186 221,186 230,986 9,800 4.43% Traffic Signals 26,422 23,045 33,362 28,150 29,471 44,000 44,000 44,000 0 0.00% Street Lighting 32,716 34,211 36,533 36,142 29,975 45,400 45,400 45,400 0 0.00% Street Lights - Billed 145,604 152,181 156,841 158,028 151,879 182,000 182,000 182,000 0 0.00% park &Recreation 1,180,502 1,426,233 1,505,145 1,482,060 1,665,607 1,779,408 1,799,408 1,848,567 69,159 3.89% Natural Resource Preservatiot 16,831 9,821 9,738 15,932 10,946 17,022 17,022 17,102 80 0.47% Recycling 224,575 228,124 239,607 169,167 176,063 245,609 245,609 250,484 4,875 1.98% Total Public Works 3,148,743 3,314,542 39522,626 3,624,481 3,904,812 4,430,572 4,450,572 4,6059734 175,162 3.95% OTHER 15,001 1,012,778 766,109 567,396 223,436 95,600 95,600 96,600 1,000 1.05% Total Other 15,001 1,012,778 766,109 567,396 223,436 95,600 95,600 96,600 1,000 1.05% GRAND TOTAL $ 11,099,494 $ 12,395,879 $ 12,841,424 $ 13,119,831 $ 13,219,841 $ 14,975,613 $ 15,127,781 $ 15,742,177 766,564 5.12% City of Andover General Fund 2024 Fund Balance Analysis 10/15/2024 Actual December 31, 2023 $11,549,450 2024 Estimated Fund Balance Increase (Decrease) (378,090) Projected December 31, 2024 11,171,360 Less: Snow Emergency (100,000) Public Safety (100,000) Facility Management (100,000) Information Technology (100,000) 2025 Budgeted Use of Fund Balance (523,630)— 523,630)—Economic EconomicDevelopment (150,000) Fiscal Disparities Fluctuation (300,000) Prepaids / Inventories (400,396) Budget Carryforwards / Adjustments (148,300) Compensated Absences (400,000) Working Cash Flow (7,871,089) Estimated Balance Available for Adjustments $ 977,945 2024 Working Cash Flow Designation Calculation: 2025 Requested Expenditure - Preliminary Estimate $15,742,177 % of 2025 General Fund Expenditures 50.000% $ 7,871,089 Matches 2025 General Fund Revenue and Expense Summary