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HomeMy WebLinkAboutWK - November 26, 2024. , , • O , 7' 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, November 26, 2024 City Hall — Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. NPDES Ordinance Discussion — Engineering 2025 Budget Development and Proposed Property Tax Levy Review — Administration/Finance 4. Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Council Members G CC: Sarah Cotton, City Administrator 3 David Berkowitz, Director of Public Works/City Engineer�D� FROM: Kameron Kytonen, Natural Resources Technician SUBJECT: NPDES Ordinance Discussion — Engineering DATE: November 26, 2024 INTRODUCTION The City Council is requested to discuss proposed updates to applicable portions of the City's Water and Sewer ordinance (Title 10) to meet the intent of the Minnesota Pollution Control Agency's (MPGA) Small Municipal Separate Storm Sewer Systems (MS4) General Permit. DISCUSSION As a part of the General Permit, requirements, the City's applicable ordinance(s) need to be updated. Specifically, they are in Title 10, Chapter 6 (Construction Site Erosion and Waste Control) and Chapter 7 (Illicit Discharge Detection and Enforcement). Attached are the proposed modifications for review and discussion. ACTION REQUIRED The City Council is requested to discuss the proposed changes to the City's Water and Sewer ordinance. Respectfully submitted, �Z—,A&. Kameron Kytonen Natural Resources Technician Attach: Draft Ordinance✓ CHAPTER CONSTRUCTION SITE EROSION AND WASTE CONTROL SECTION: 10-6-1: Declaration of Policy 10-6-2: Definitions 10-6-3: Application and SWPPP Requirements for Contractor 10-6-4: Right of Entry Provision 10-6-5: Onsite Activity Requirements 10-6-6: Erosion Control and Site Stabilization 10-6-7: Inspections and Investigations 10-6-8: Sanctions for Compliance 10-6-1: DECLARATION OF POLICY: During the construction process, soil and debris is highly vulnerable to erosion by wind and water. Eroded soil and debris endangers water resources by reducing water quality and causing the siltation of aquatic habitat or fish and other desirable species. Eroded soil and debris also necessitates cleaning sewers and ditches. The purpose of this ordinance is to safeguard persons, protect property and prevent damage to the environment in the City. It is intended to also promote the public welfare by guiding, regulating and controlling the design, construction, use and maintenance of any development or other activity that disturbs or breaks the topsoil or results in the movement of earth on land and generates debris. The City hereby adopts and incorporates by reference the erosion, sediment, and waste control standards established by the Minnesota Pollution Control Agency's NPDES/SDS Construction Stormwater General Permit MNR100001 (CSW Permit) as now constituted and from time to time amended. The information in this ordinance is supplemental to language in other ordinances, plans, policies, guidelines and contracts included but not limited to the following: 1. City of Andover Surface Water Reseurse Management Plan (WRAAR) (SWMP) 2. Building Rules and Guidelines 3. Development contracts. Storm Water Pollution Prevention Program Engineering Plan Review Checklist 10-6-2: DEFINITIONS: BEST MANAGEMENT PRACTICES (BMP'S): Technique or series of techniques, which are proven to be effective in controlling runoff, erosion, sedimentation and construction debris confinement. CITY: City of Andover. CITY ENGINEER: Andover City Engineer or other designated authority charged with the administration and enforcement of this chapter. CONSTRUCTION ACTIVITY: Activities including clearing, grading, and excavating, that result in land disturbance of equal to or greater than one acre, including the disturbance of less than one acre of total land area that is part of a larger common plan of development or sale if the larger common plan will ultimately disturb equal to or greater than one acre. This includes a disturbance to the land that results in a change in the topography, existing soil cover, both vegetative and nonvegetative, or the existing soil topography that may result in accelerated stormwater runoff that may lead to soil erosion and movement of sediment. Construction activity does not include a disturbance to the land of less than five acres for the purpose of routine maintenance performed to maintain the original line and grade, hydraulic capacity, and original purpose of the facility. Routine maintenance does not include activities such as repairs, replacement and other types of non -routine maintenance. Pavement rehabilitation that does not disturb the underlying soils (e.g., mill and overlay projects) is not construction activity. CONSTRUCTION DEBRIS: Any waste generated as a result of construction including but not limited to discarded building materials, concrete truck washout, chemicals, litter or refuse and sanitary waste. CONTRACTOR: Any person who's responsible for abiding by the applicable requirements set forth in this ordinance. DNR: Minnesota Department of Natural Resources. EROSION: The wearing away of the ground surface as a result of the movement of wind, water, ice and/or land disturbance activities. EROSION CONTROL: A measure that prevents erosion. ESTABLISHED YARD: A yard that has permanent ground cover established suitable for long-term erosion control including but not limited to seed, sod, native plants, shrubbery, trees, rock or mulch. GENERAL PERMIT: A permit issued under Minn. R. 7001.0210 to a category of owners/operators whose operations, emissions, activities, discharges, or facilities are the same or substantially similar. GRADING, DRAINAGE AND EROSION CONTROL PLAN: A city and local watershed approved plan required prior to commencement of any site grading, which details grading requirements, drainage characteristics and erosion control methods. IMPERVIOUS SURFACE: A constructed hard surface that either prevents or retards the entry of water into the soil and causes water to run off the surface in greater quantities and at an increased rate of flow than prior to development. Examples include rooftops, sidewalks, driveways, parking lots, and concrete, asphalt, or gravel roads. Bridges over surface waters are considered impervious surfaces. LOCAL WATERSHED: The local regulating authority for watershed management; the two servicing Andover include the Coon Creek Watershed District (CCWD) and Lower Rum River Watershed Management Organization (LRRWMO) respectively. MPCA: Minnesota Pollution Control Agency. MUNICIPAL SEPARATE STORM SEWER SYSTEM (MS4): A conveyance or system of conveyances including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains: a) owned or operated by a state, city, town, county, district, association, or other public body, created by or pursuant to state law, having jurisdiction over disposal of sewage, industrial wastes, stormwater, or other wastes, including special districts under state law such as a sewer district, flood control district, or drainage district or similar entity, or an Indian tribe or an authorized Indian tribe organization, or a designated and approved management Agency under section 208 of the federal Clean Water Act, United States Code, title 33, section 1288, that discharges into waters of the state; b) designed or used for collecting or conveying stormwater; c) that is not a combined sewer; and d) that is not part of a publicly owned treatment works as defined in 40 CFR 122.2. NATIONAL POLLUTANT DISCHARGE ELIMIATION SYSTEM (NPDES): The program for issuing, modifying, revoking, reissuing, terminating, monitoring, and enforcing permits under the Clean Water Act, as amended (33 U.S.C. 1251 et seq. Section 1342 and 40 CFR parts 122, 123, 124 and 450). PERSON: Any individual, firm, company, association, society, corporation or group. PUBLIC WATERS: All water basins and watercourses described in Minn. Stat. Sect. 103G.005 subp.15. ROUGH GRADE: The stage at which the grade approximately conforms to the approved plan. SITE: Any real property upon which improvements are to be made. SITE GRADING: Excavation or fill of material, including the resulting conditions thereof. STORM DRAIN/STORM SEWER: A drain or sewer for conveying storm water runoff, ground water, subsurface water or unpolluted water from any source. STORMWATER: Precipitation runoff, stormwater runoff, snowmelt runoff and any other surface runoff and drainage. SWPPP: Storm Water Pollution Prevention Program STRUCTURAL STORMWATER BMP: A stationary and permanent BMP that is designed, constructed and operated to prevent or reduce the discharge of pollutants in stormwater. SUSPENDED SOLIDS: Total suspended matter that either floats on the surface of or is in suspension in water and/or other liquids. 10-6-3: APPLICATION AND SWPPP REQUIREMENTS FOR CONTRACTOR: It is the responsibility of the Contractor to obtain all the necessary permits from the MPCA and abide by all the requirements set forth in the General Stormwater Permit for Construction Activity (Permit Number: MN R 100001). 10-6-4: RIGHT OF ENTRY PROVISION: Every licensee shall allow any peace officer, health officer, or properly designated officer or employee of the City to enter, inspect, and search the grounds of the licensee at reasonable hours without a warrant. 10-6-5: ONSITE ACTIVITY REQUIREMENTS: Debris Storage: All construction debris shall be kept in an enclosed building or properly contained Waste Disposal: It shall be the responsibility of the Contractor to dispose of all construction debris in a manner approved by the City. Construction Entrance Criteria: The Contractor shall take all the necessary measures to prevent sediment from entering the City streets during the construction process. RpGt*nn Q O of this GhapteF Site Dewatering: Water pumped from the site shall be treated prior to entering a wetland, lake, river or stream to meet requirements set forth by DNR, MPCA and local watershed rules and regulations. 10-6-6: EROSION CONTROL AND SITE STABILIZATION: Erosion Control Placement Requirements: Silt fence or another approved erosion control method shall be installed on individual lots to protect the following: 1. Wetlands; 2. Sedimentation ponds, basins or drainage swales; 3. Established yards; 4. Valuable pieces of natural lands; and 5. Special circumstances determined by the City Engineer or designee. Silt Fence Installation Procedures: Silt fence shall be installed to meet the City of Andover standard details per Standard Drawing No. 601. Site Erosion Control Timelines for Compliance: Silk fease Erosion control shall be installed in all the locations of the site per the Grading, Drainage and Erosion Control Plan. No grading shall take place until verbal authorization is given by the City Engineer or designee. Salt Erosion control shall be installed in the locations as prescribed in section 6.1 of this chapter prior to the release of a building permit to the builder for each individual lot. No permit shall be issued until the City Engineer or designee signs the Building Permit Application. Temporary Site Stabilization: Sites that are to be left with barren soils exposed for more than twe weeks one week following the completion of rough grading due to weather conditions, time of season, construction phase or other reason shall be temporarily stabilized by establishing adequate ground cover with City or watershed approved measures, which may include but is not limited to one or more of the following: 1. Straw fiber blanket; 2. Mulch; 3. Hay; 4. Seed or sod; or 5. Tarping 6. Hydro -mulch 10-6-7: INSPECTIONS AND INVESTIGATIONS: The City shall do periodic inspections to ensure that proper erosion control and construction debris containment measures are met. 10-6-8: SANCTIONS FOR COMPLIANCE: Violations Declared: A case where a BMP has failed, was removed, was not properly installed, was not installed or was not managed properly, which increases the potential for pollutants to waters of the state includes but is not limited to the following: 1. Silt ffennp Erosion control failure or improper installation; 2. Non -storm water discharges on impervious surfaces; 3. Garbage, refuse, construction debris; and 4. The presence of barren soils for an extended period of time. Corrective Measures: The following are corrective measures that shall be taken, as directed by the City: 1. Repairing and/or adding ^i"�:,re erosion control; 2. Removing pollutants from impervious surfaces including streets and gutters not limited to sand or other sediment, brush, garbage, refuse, construction debris, oils and concrete washout by an effective means; 3. Picking up garbage, refuse or construction debris in and amongst the grounds of the development and/or adjacent properties; and 4. Stabilizing the site by furnishing adequate ground cover to lessen wind and water erosion as pFeSGribed iR seGtien 6.4 of this ^h^^f^- Procedure for Correction: Upon the determination of a violation, a deadline for correction shall be given with notification of penalties for failing to comply. The Contractor shall be notified both orally and/or in writing and will be given a reasonable timeframe for correcting the violation. Penalties for Non-compliance: Failure to meet the deadline will result in one or more of the following penalties: 1. The City performing the necessary work or contracting for the completion of the work and billing the contractor/property owner for said services and/or using escrow funds; 2. Discontinuing the issuance of any permits or Certificate of Occupancies (CO's) in the development or for the individual lot; 3. Stop work orders; and 4. Discontinuing scheduled inspections. Violation; Misdemeanor: Any person who is found to violate any section of this Ordinance shall be charged with a misdemeanor and, upon conviction thereof, shall be subject to a misdemeanor penalty as then defined by Minnesota law. Additionally, the City may exercise any civil remedy available under Minnesota law for the enforcement of this Ordinance including civil action, mandamus, injunctive relief, declaratory action, or the levying of assessments. (Ord. 346 / 6- 19-07) CHAPTER ILLICIT DISCHARGE DETECTION AND ENFORCEMENT SECTION 10-7-1: Purpose/Intent 10-7-2: Definitions 10-7-3: Applicability 10-7-4: Responsibility For Administration 10-7-5: Severability 10-7-6: Discharge Prohibitions 10-7-7: Industrial or Construction Activity Discharges 10-7-8 Salt Storage and Handling 10-7-8 9: Right of Entry 10-7-9 10: Recordkeeping Procedures 10-7-1-0 11: Violations Deemed a Public Nuisance 10-7-14 12: Appeal Of Notice Of Violation 10-7-1-2 13: Injuctive Relief 10-74-3 14: Compensatory Action 10-7-1415: Penalties 10-7-15 16: Remedies Not Exclusive 10-7-1: PURPOSE/INTENT: The purpose of this chapter is to provide for the health, safety, and general welfare of the citizens of the City through the regulation of non -storm water discharges to the Municipal Separate Storm Sewer System (MS4), as required by federal and state law, and to establish inspection and monitoring procedures for this purpose. The information in this ordinance is supplemental to language in other ordinances, plans, policies, guidelines and contracts included but not limited to the following: 1. City of Andover Surface Water Resource Management Plan (WRMP) (SWMP) 2. Building Rules and Guidelines 3. Development contracts. 4. Storm Water Pollution Prevention Program 5. Engineering Plan Review Checklist 10-7-2: DEFINITIONS: BEST MANAGEMENT PRACTICES (BMP'S): Management practices or techniques to prevent or reduce the discharge of pollutants to the MS4. CLEAN WATER ACT: The federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), and any subsequent amendments. CONSTRUCTION ACTIVITY: Activities subject to NPDES Construction Permits. FACILITY: A commercial, industrial or institutional building. ILLICIT DISCHARGE: Any non -storm water discharge to the MS4 that will contribute to pollution. Exceptions include water line flushing, landscape irrigation, diverted stream flows, rising ground waters, uncontaminated ground water infiltration, uncontaminated pumped ground water, discharges from potable water sources, foundation drains, air conditioning condensation, springs, water from crawl space pumps, footing drains, individual residential car washing, flows from riparian habitats and wetlands, dechlorinated swimming pool discharges, street wash water and discharges from fire fighting activities. INDUSTRIAL ACTIVITY: Activities subject to NPDES Industrial Permits as defined in 40 CFR, Section 122.26 (b)(14). M34: Municipal Separate Storm Sewer System. MUNICIPAL SEPARATE STORM SEWER SYSTEM: A conveyance or system of conveyances, owned or operated by the City, which discharges to a water of the state and is designed or used for collecting or conveying storm water and which is not a combined sewer. NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) STORM WATER DISCHARGE PERMIT: A permit issued by EPA (or by a State under authority delegated pursuant to 33 USC § 1342(b)). PREMISES: A building, lot, parcel of land, or portion of land. 10-7-3: APPLICABILITY: This chapter shall apply to all water entering the MS4 unless explicitly exempted by the City. 10-7-4: RESPONSIBILITY FOR ADMINISTRATION: The City, or its designee, shall administer, implement, and enforce the provisions of this chapter. A. Inspections and Investigations: The City may perform inspections to ensure compliance with this chapter. 10-7-5: SEVERABILITY: The provisions of this chapter are hereby declared to be severable. 10-7-6: DISCHARGE PROHIBITIONS: A. Prohibition of Illicit Discharges: No person shall discharge or cause to be discharged into the MS4 any illicit discharges. B. Exemptions: The commencement, conduct or continuance of any illicit discharge to the MS4 is prohibited, except the following exemptions: 1. Any water source not containing pollutants. 2. Discharges specified in writing by the City as being necessary to protect public health and safety. 10-7-7: INDUSTRIAL OR CONSTRUCTION ACTIVITY DISCHARGES: Any person subject to an industrial or construction activity NPDES storm water discharge permit shall comply with all provisions of such permit. Proof of compliance with said permit may be required in a form acceptable to the City prior to the allowing of discharges to the MS4. 10-7-8: SALT STORAGE AND HANDLING: For all commercial, institutional and industrial properties, there shall be proper salt storage and handling procedures in place. This includes having designated salt storage areas to be properly covered or indoors. The designated salt storage area shall be on an impervious surface. Also, there shall be practices in place to reduce exposure when transferring the material. This includes but is not limited to sweeping, diversions, securing and/or containment to prevent salt product from going off site and into waters of the state or groundwater on or off site. 10-7-8 9: RIGHT OF ENTRY: The City shall be permitted to enter and inspect commercial, industrial or institutional facilities subject to regulation to determine compliance with this chapter. 10-7-910: RECORDKEEPING PROCEDURES: The City shall keep adequate records of all correspondence related to the contents of this chapter for no less than six (6) years. 10-7-4-911: VIOLATIONS DEEMED A PUBLIC NUISANCE: Any condition caused or permitted to exist in violation of this chapter is declared and deemed a nuisance which may be summarily abated or restored at the violator's expense, as set forth in City Code 4-1-4, and/or for which a civil action to abate, enjoin, or otherwise compel the cessation of such nuisance may be taken. 10-7-44 12: APPEAL OF NOTICE OF VIOLATION: Any person receiving a Notice of Violation may appeal the determination of the City. The notice of appeal must be received within fourteen (14) days from the date of the Notice of Violation. Hearing on the appeal before the City Council shall take place within fifteen (15) days from the date of receipt of the notice of appeal. 10-74-2 13: INJUNCTIVE RELIEF: If a person has violated or continues to violate the provisions of this chapter, the City may petition for a preliminary or permanent injunction restraining the person from activities which would create further violations or compel the person to perform abatement or remediation of the violation. 10-7-1-314: COMPENSATORY ACTION: In lieu of enforcement proceedings, penalties, and remedies authorized by this chapter, the City may impose alternative compensatory actions. 10-7-4415: PENALTIES: A. Financial Penalty: Upon the first abatement of a nuisance, the property may be subject to the costs outlined in Section 10-7-10. An additional financial penalty may be imposed on properties upon a second violation. The cost would be based on the specific event. Each successive violation abated thereafter may be subject to a cumulative penalty per occurrence. B. Misdemeanor Penalty: Any person violating a provision of this chapter shall be guilty of a misdemeanor as defined by state law and subject to the penalties therefore. Each day in which such violation continues shall constitute a separate offense. 10-7-45 16: REMEDIES NOT EXCLUSIVE: The remedies listed in this chapter are not exclusive of any other remedies available under any applicable federal, state or local law and it is within the discretion of the City of Andover to seek cumulative remedies. (Ordinance 401, 12-21-10) Y 0 F OCjTL. 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 Sarah Cotton, City Administrator Lee Brezinka, Finance Manager 2025 Budget Development Progress Update/Discussion November 26, 2024 9) 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 12.71 % 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. By the November 28th workshop, all the City of Andover residents and businesses should have received property tax statements. Much of what will be covered at the workshop will be repeat information with updates to date; Administration is looking for City Council direction as the fmal preparation steps for the December 3, 2024, Budget/Lew Hearing for the 2025 Budget nears. City Administration will review with the Council the bold italics items at the meeting. Also.... Administration/Finance will review with the Council the following attachments at the meeting: 1. Pay 2025 Valuation Estimates (Py- 12) 2. City ofAndover Property Tax Levy — 2019 to proposed 2025 (po. 13 —142 3. Proposed Resolution to Adopt the 2025 Budget and Tax Levy(pgs. 15 —17) 4. City ofAndover 2025 Budget Summary by Fund Types (pgs. 18 — 27) 5. Proposed 2025 General Fund Revenue & Expense Summary (pgs. 28 — 31) 6. Graphs that will be used at the December 4, 2024, Budget Hearing (pgs. 32 — 38) 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 refect only a 0.40 % increase in total taxable market value for 2025, last year the increase was 2.93%. (See attached Pay 2025 Valuation Estimates.) 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. The Council did approve at the November 19`h Council meeting a $93,700 transfer to the Capital Equipment Reserve Capital Projects Fund to offset the costs related to the August 2024 storm. 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 21.50% of the gross tax levy, the 25% guideline for 2025 will be attained via the structured management of the current long-term debt as an equipment certificate and street reconstruction bonds are contemplated for late 2024. 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) developmentprocess. The 2025-2029 CIP was adopted after a public hearing at the September 17 h 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 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. StaffingFocus ocus 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 Sheriffs 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 staffing request from the Fire Department for the 2025 budget. Deadline for submission was July Pt. 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. 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 and did present to the Council at the August 27h workshop the findings and recommended market adjustments for various non bargaining positions. The Council did provide direction to integrate those recommendations addressing market competitiveness into the 2025 budget. 2. A midyear review of the employee health plan for the 2025 Budget was conducted with our broker on July 9h and October 22nd, and an increase in the renewal rates was forecasted. 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 4 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. A 9.5% increase in the renewal rates was approved at the November 41h Council meeting. 3. Fire Services Study The City of Andover Strategic Plan identifies the following as a major short-term initiative, "Evaluate staff ng and level of service for Fire, EMS, and Sheriff's Office to provide effective fire and rescue response. " hi 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 17'h. 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 18a` 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 28th Council workshop. The outcome of the May 28�h 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 4' 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 31st 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 5 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 Sheriff's Office to provide effective fire and rescue response. • Continue to enter into collaborative agreements and partnerships when mutually beneficial. The City Attorney 2024 contract included a 2% increase over the 2023 contract. The proposed 2025 budget is carrying a placeholder increase for the attorney's 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 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. 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 were for a 2025 status quo contract. The 2025 City of Andover Law Enforcement contract was approved at the July 2, 2024 with expenditures budgeted at $3,93 6,982 (5.27% increase), 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(4.65% increase). 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. 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 the YMCA to develop a more structured after school program at the ACC. 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 $159, 000 to date in settlement funds. Capital Projects 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 $114,868for 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. hi 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. 0 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. A 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. Staff will 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 10 ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. Respectfully submitted, Aezinka Attachments 11 CITY OF ANDOVER Pay 2025 Valuation Estimates City of Andover Taxable Market Values $6,000,000,000 $5,000,000,000 $4,000,000,000 $60,000,000 $3,000,000,000 $50,000,000 $2,000,000,000 ESTIMATE $1,000,000,000 $30,000,000 Pay 2022 Pay 2023 Pay 2024 Pay 2025 Taxable Tax Taxable Tax Taxable Tax Taxable Tax Market Capacity Market Capacity Market Capacity Market Capacity Value Value Value Value Value Value Value Value Andover Valuation Totals $ 3,885,459,439 $ 40,210,548 $ 4,786,225,134 $ 50,267,978 $ 4,926,472,404 $ 52,292,926 $ 4,946,320,181 $ 52,684,446 Captured Tax Increment (122,976) (141,278) (210,758) (121,674) Fiscal Disparity Contribution (1,414,808) (1,368,461) (1,449,326) (1,780,176) Local Tax Rate Value 38,672,764 48,758,239 50,632,842 50,782,596 Fiscal Disparity Distribution 6,037,850 5,500,256 5,711,542 6,030,031 Total Adjusted Values $ 44,710,614 $ 54,258,495 $ 56,344,384 $ 56,812,627 21.35% 3.84% 0.83% Taxable Market Value Tax Capacity Value % Change % Change N Pay 2022 $ 3,885,459,439 Pay 2022 $ 40,210,548 Pay 2023 $ 4,786,225,134 23.18% Pay 2023 $ 50,267,978 25.01% Pay 2024 $ 4,926,472,404 2.93% Pay 2024 $ 52,292,926 4.03% Pay 2025 $ 4,946,320,181 0.40% Pay 2025 $ 52,684,446 0.75% City of Andover Taxable Market Values $6,000,000,000 $5,000,000,000 $4,000,000,000 $60,000,000 $3,000,000,000 $50,000,000 $2,000,000,000 $40,000,000 $1,000,000,000 $30,000,000 $0 Pay 2022 Pay 2023 Pay 2024 Pay 2025 City of Andover Tax Capacity Values $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Pay 2022 Pay 2023 Pay 2024 Pay 2025 General & Other Operational Levies General Operations Community Center Operations Parks Repair/Replacement Items Total General & Other Operational Levies Debt Service Levies 2010A G.O. Open Space Referendum Bonds 20120 Taxable G.O. Abatement Bonds 2016A G.O. Equipment Certificate 2018A G.O. Cap Improv Plan Bonds W19A G.O. Abatement Bonds 2020A G.O. Equipment Certificate 2021A G.O. Equipment Certificate 2021A G.O. Street Reconstruction Bonds W24 G.O. Equipment Certificate 2025 G.D. $"at Reconsimction Bonds City of Andover, Minnesota Property Tax Levy Certified Certieed Certified Certified Certified Requested Change 2020 2021 2022 2023 2024 2025 %of Total $ % $ 9,194,032 $ 9,396,493 $ 9,868,370 $ 10,591,789 $ 11,341,126 $ 11,908,182 58.37% $ 567,056 5.00% - 155,000 155,000 155,000 155,000 155,000 0.76% $ - 0.00% 120,000 120,000 130.000 145.000 235.000 235,000 1.15% $ 0.00% 9,314,032 9,671,493 10,153,370 10,891,789 11,731,126 12,298,182 60.28% $ 567,056 4.83% 184,199 151,078 - 3,751,062 976.780 973.263 974,628 969,745 143,373 - - - 433,603 456,344 617,519 612,794 1,001490 976,966 1,014,065 1,028,782 350,000 406,224 374,850 376,740 - 170,000 170,000 174,773 - - 600,000 603,863 973,650 969,824 612,794 617,257 1,028,783 1,018,10D 174,825 176.715 651,658 649,138 450,000 450,000 1,000,000 Total Debt Service Levies 3,089,045 3,133,875 3,751,062 3,766,697 3,891,710 4,881,034 23.92% $ 989,324 25.42% Other LeWes Capital Projects Levy Capital Equipment/Project 275,000 250,000 275,000 275,000 300,000 300,000 1.47% $ - 0.00% w Facility Maintenance Reserve W 355,000 355,000 355,000 355,000 355,000 355,000 1.74% $ - 0.00% Parks Projects 15.000 15,000 15,000 15,000 15,000 15,000 0.07% $ - 0.00% Road &Bridge 1,287,469 1,342,456 1,409,579 1,619,190 1,651,822 2,400,000 11.76% $ 748,178 45.29% Pedestrian Trall Maintenance 104,040 106,121 108,243 110,408 112,616 114,868 0.56% $ 2,252 2.00% Lower Rum River Watershed 40,000 40,000 40,000 40,000 40,000 40,000 0.20% $ 0.00% Total Other Levies 2,076,509 2,108,5n 2,202,822 2,414,598 2,474,438 3.224.868 15.80% $ 750,430 30.33% Gross City Levy 14,479,586 14,913,945 16,107,254 17,073,084 18,097,274 20,404,084 100.00% $ 2,308,810 12.75% Less Fiscal Disparities Distribution 1,396,892 1,957,824 2,153,911 1,984,687 1,767,559 1,944,871 Local Tax Rate Levy $ 12,582,694 $ 12,956,121 $ 13,953,343 $ 15,088,397 $ 16,329,715 $ 18,459,213 Less Low Based on Market Velue E 184,199 E 151078 $ $ E $ Net Local Tex Rate Levy _L12.398,495 § 11,805,043 _E_13,953.M $ 15,088,397 $ 16,329,715§ 1BA59,213 Adjusted Tax Capacity Value" (1) _L34,675,332 $ 35,898,536 E 38,872,764 $ 48,758,239 $ 50,632,842 $ 50,782,596 3.53% 7.73% 26.03% 3.84% 0.30% Change % Change Tax Capacity Rate— 35.756% 35.670% 36.081% 30.945% 32.251% 36.349% 4.098% 12.710% Tax Capacity Rate W/O LRRWSD 35.656% 35.574% 35.994% 30.873% 32.181% 36.280% Tax Capacity Rate With LRRWSD 35.942% 35.845% 36.245% 31.073% $2.378% 36.471% Voter Approved Ref -MV 0.00526% 0.00418% 0.00000% 0.00000% 0.00000% "Adjusted Veto& determined by adjusting for Fiscal Disparities and Tax Increment estimates. —Blendedmte due to the City ofAndove.-levying for Lower Rum River Watorshed Dlaekt (1) Adjusted Tax Capacity Value is subject to change. City of Andover Gross Tax Levy $23,000,000 $21,000,000 $19,000,000 0,404,084 $17,000,000 $17,073,084 P $15,000,000 $16 107 754 $13,000,000 $14,479,586 $14,913,945 $13,103,487 $11,000,000 $12,416,357 $9,000,000 $7,000,000 $5,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 r Ln CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. A RESOLUTION ADOPTING THE CITY OF ANDOVER 2025 BUDGET AND 2025 PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS, the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS, the City of Andover receives significant financial support from its residents through the payment of property taxes; and WHEREAS, the City of Andover has the responsibility to appropriately and efficiently manage the public's funds; and WHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 28, 2024; and WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 28, 2024. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2025 City of Andover Budget and the 2025 property tax levy totaling $20,404,084 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2025 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES General Fund $ 15,218,547 General Fund $ 15,718,155 Special Revenue Funds 2,517,718 Special Revenue Funds 3,634,168 Debt Service Funds 5,735,441 Debt Service Funds 4,220,262 Capital Projects Funds 12,523,306 Capital Projects Funds 19,266,214 Enterprise Funds 7,007,532 Enterprise Funds 6,835,691 Internal Service Funds 1,969,601 Internal Service Funds 1,919,851 Total $ 44,972,145 Total $ 51,594,341 Adopted by the City of Andover this _ day of December 2024. CITY OF ANDOVER ATTEST: Sheri Bukkila - Mayor Michelle Harmer — City Clerk CITY OF ANDOVER, MINNESOTA 2025 Property Tax Levy Proposed 2025 Levy General Fund Levy General Operations $ 11,908,182 Community Center Operations 155,000 Park Repair/Replacement Items 235,000 Total General Fund 12,298,182 Debt Service Funds Levy 355,000 2012C Taxable G.O. Abatement Bonds 969,824 2018A G.O. Capital Improvement Plan Bonds 617,257 2019A Taxable G.O. Abatement Bonds 1,018,100 2021A G.O. Equipment Certificate 176,715 r, 2021A G.O. Street Reconstruction Bonds 649,138 0' 2024 G.O. Equipment Certificate 450,000 - 2025 G.O. Street Reconstruction Bonds 1,000,000 Total Debt Service 4,881,034 Other Levies Capital Projects Levy Capital Equipment/Project 300,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 2,400,000 Pedestrian Trail Maintenance 114,868 Lower Rum River Watershed 40,000 Total Other 3,224,868 Gross City Levy $ 20,404,054 Attachment A STATE OF MINNESOTA) l rrlr�.rr��rr�et0 CITY OF ANDOVER I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No. adopting the City of Andover 2025 Budget and 2025 Property Tax Levy with the original record thereof preserved in my office, and have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF, I have hereunto subscribed my hand this _ day of December 2024. Michelle Harmer — City Clerk r 0 General Fund Revenues: $15,218,547 Expenditures: $15;718,155 General Government Public Safety Public Works Other Fund Definitions CITY OF ANDOVER 2025 Budget Summary By Fund Type City of Andover- Budgeted Funds Total Revenues: $44,972,145 Total Expenditures: $51,594,341 I Governmental Funds I Special Revenue Funds Revenues: $2,517,718 Expenditures: $3,634,168 EDA Drainage & Mapping LRRWMO Forestry ROW Mgmt/ Utility Construction Seal Coating Community Center Local Affordable Housing Aid Charitable Gambling CARES Act / ARPA Funding Debt Service Funds Revenues: $5,735,441 Expenditures: $4,220,262 G.O. CIP Bonds G.O. Street Recon Bonds G.O. Equip Certificates G.O. Referendum Bonds G.O. Abatement Bonds Capital Projects Funds Revenues: $12,523,306 Expenditures: $19,286,214 Proprietary Funds Enterprise Funds Revenues: $7,007,532 Expenditures: $6,835,691 Water Trunk F Sewer Trunk Illlj Road & Bridge Trail & Transportation Cap Equip Reserve Tax Increment Park Dedication PIR Projects Building CIP / Street Recon Bond Projects Equipment Certificates Sewer Fund Water Fund Storm Sewer Fund Internal Service Funds Revenues: $1,969,601 Expenditures: $1,919,851 Central Equipment / Maint. Risk Management General Fund - accounts for the revenues and expenditures necessary to carry out basic governmental activities of the City such as general government, public safety, public works, and other. Special Revenue Funds - accounts for revenue sources that finance particular functions and projects. Debt Service Funds - accounts for the accumulation of resources for, and the payment of general long-term debt. Capital Projects Funds - accounts for the acquisition or construction of major capital facilities financed mainly with governmental fund sources, general obligation debt, special assessments, and other. Enterprise Funds - accounts for activities that consist of rendering services or providing goods to the public for which a fee or charge is collected. Internal Service Funds - accounts for goods and services that are provided to other City departments, or to other governments, on a cost reimbursement basis. Fund Balance/Net Assets, January 1 Revenues & Other Sources General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Revenues & Other Sources: Total Available: Expenditures & Other Uses General O Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Expenditures & Other Uses: Fund Balance/Net Assets, December 31 Change in Fund Balance CITY OF ANDOVER 2025 Budget Summary Revenues and Expenditures Fund Summary Actual 2023 $ 67,251,291 14,804,988 3,472,475 4,725,197 10,630,622 8,225,111 2,134,866 43,993,259 111,244,550 13,219,879 3,129,622 4,397,157 10,817,874 7,399,867 1,695,337 40,659,736 $ 70,584,814 3,333,523 4.96% Adopted 2024 $ 70,584,814 14,506,539 2,769,968 4,737,010 14,758,797 6,878,484 1,889,225 45,540,023 116,124,837 14,975,613 2,953,603 4,470,420 21,848,120 8,315,168 1,839,467 54,402,391 $ 61,722,446 (8,862,368) -12.56% Estimate 2024 $ 70,584,814 14,749,691 3,084,593 4,744,310 24,486,104 6,878,484 1,889,225 55,832,407 126,417,221 15,254,818 2,921,891 4,928,575 20,071,940 8,494,568 1,830,967 53,502,759 $ 72,914,462 2,329,648 3.30% Budget 2025 $ 72,914,462 15,218,547 2,517,718 5,735,441 12,523,306 7,007,532 1,969,601 44,972,145 117,886,607 15,718,155 3,634,168 4,220,262 19,266,214 6,835,691 1,919,851 51,594,341 $ 66,292,266 (6,622,196) -9.08% CITY OF ANDOVER 2025 Budget Summary Revenues and Expenditures by Fund Type Special Debt Capital - Internal General Revenue Service Projects Enterprise Service Total Fund Balance/Not Assets, January 1 $ 11,044,323 $ 2,478,986 $ 3,635,008 $ 43,061,494 $ 11,426,558 $ 1,268,093 $ 72,914,462 Revenues General Property Taxes Tax Increments Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines Investment Income User Charges Meters Miscellaneous Total Revenues: Other Financing Sources N Operating Transfers In 0 Bond Proceeds Total Other Financing Sources: Total Revenues and Other Sources: Total Available: 12,188,182 668,850 911,625 966,910 50,500 100,000 155,300 15,041,367 177,180 177,180 15,218,547 26,262,870 195,000 4,881,034 3,184,868 - - 70,000 - - 2,187,000 112,500 - 5,693,153 1,326,000 - - 14,250 - 77,500 - - 260,685 869,968 4,000 340,000 2,517,718 4,881,034 11,813,206 13,000 - 13,000 - 854,407 710,100 6,948,358 854,407 710,100 2,517,718 5,735,441 12,523,306 4,996,704 9,370,449 55,584,800 - - 20,449,084 - - 70,000 - - 2,187,000 - - 668,850 - - 6,717,278 6,828,858 1,965,601 11,087,369 - - 50,500 62,500 4,000 258,250 - - 260,685 13,000 - 13,000 44,000 5,669,767 1,409,268 6,948,358 1,969,601 43,171,284 14,521,126 3,474,326 703,093 59,174 - 1,800,861 59,174 - 1,800,861 7,007,532 1,969,601 44,972,145 18,434,090 3,237,694 117,886,607 Expenditures Personal Services 7,019,657 992,122 - - 1,420,585 693,838 10,126,202 Supplies and Materials 940,041 124,420 - - 654,300 522,920 2,241,681 Purchased Services 5,365,555 304,212 - - - - 5,669,767 Other Services and Charges 2,157,902 895,314 - 14,521,126 3,474,326 703,093 21,751,761 Capital Outlay 235,000 1,008,000 - 4,176,807 364,000 - 5,783,807 Debt Service 4,220,262 - 4,220,262 Total Operating Expenditures: 15,718,155 3,324,068 4,220,262 18,697,933 5,913,211 1,919,851 49,793,480 Other Uses Operating Transfers Out - 310,100 - 568,281 922,480 - 1,800,861 Total Other Uses: 310,100 568,281 922,480 - 1,800,861 Total Expenditures and Other Uses: 15,718,155 3,634,168 4,220,262 19,266,214 6,835,691 1,919,851 51,594,341 Fund Balance/Net Assets, December 31 $ 10,544,715 $ 1,362,536 $ 5,150,187 $ 36,318,586 $ 11,598,399 $ 1,317,843 $ 66,292,266 Change in Fund Balance $ (499,608) $ (1,116,450) $ 1,515,179 $ (6,742,908) $ 171,841 $ 49,750 $ (6,622,196) -4.52% -45.04% 41.68% -15.66% 1.50% '3.92% -9.08% CITY OF ANDOVER 2024 Budget Summary Revenues and Expenditures - All Funds Actual ,Budget Estimate Budget 2023 2024 2024 2025 Fund Balance/Net Assets, January 1 $ 67,251,291 $ 70,584,814 $ 70,584,814 $ 72,914,462 Revenues Oeneml Property Taxes 16,955,120 18,142,274 18.142,274 20,449.084 Tax Increments 100,476 100,475 100,582 70,000 Special Assessments 1,114,953 1,301,000 1,453,122 2,187,000 Licenses and Permits 854,739 617,600 722,175 668.850 Intergovernmental 5,067,131 8,877,197 8,922.090 6,717,278 Charges for Services 12,337,029 10,520,592 10,775,202 11,087,369 Fines 70,683 50,500 50,500 50,500 Investment Income 2,937,476 247,400 521,400 258,250 User Charges 805,958 409,490 1,680,355 260,685 Meters 36,544 13,000 13,000 13.000 Miscellaneous 1,399,979 1,349,868 1,333,875 1,409,268 Total Revenues: 41,680,088 41,629,396 43,714,575 43,171,284 Other Financing Sources Operating Transfers In 2,211,317 2,330,627 2,879,232 1,800,861 Bond Proceeds - 1,580,000 9,205,000 - N Proceeds from Sale of Property 101,854 - 33.600 I--� Total Other Financing Sources: 2,313,171 7910,627 12,117,832 1,800,861 Total Revenues and Other Sources: 43,993,259 45,540,023 55,832,407 44,972,145 Total Avallable: 111,244,550 116,124,837 126,417,221 117,886,607 Expenditures Personal Services 8,857,561 9,509,418 9,605,255 10,126,202 Supplies and Materials 1,808,939 2,081,403 2,155,107 2,241,681 Purchased Services 5,056,108 5,677,349 5,807,718 5,669,767 Omer Services and Charges 14,337,773 14,699,221 14,172,791 21,751,761 Capital Outlay 3,215,845 15,608,000 14,383,033 5,783.807 Debt Service 5.172,193 4,496,373 4,499,623 4,220,262 Total Operating Expenditures: 38,448,419 52,071,764 50,623,527 49,793,480 Other Uses Operating Transfers Out 2,211,317 2,330,627 2,879,232 1,800,861 Total Other Uses: 2,211,317 2,330,627 2,879,232 1,800,861 Total Expenditures and Other Uses: 40,659,736 54,402,391 53,502,759 51,594.341 Fund Balance/Net Assets, December 31 $ 70,584814 $ 61,722,446 $ 72,914,462 $ 66,292,266 Change in Fund Balance $ 3,333,523 $ (8,862,368) $ 2,329,648 $ (6,622,196) 4.96% -12.56% 3.30% -9.08% N N City of Andover 2025 Budget - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 9,964,341 $ 11,549,450 $ 11,549,450 $ 11,044,323 10,663,259 Actual 1 Adopted 1 Estimate Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines Investment Income Miscellaneous Revenue Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 9,964,341 $ 11,549,450 $ 11,549,450 $ 11,044,323 10,663,259 11,621,126 11,621,126 12,188,182 854,739 617,600 722,175 668,850 977,028 868,657 834,259 911,625 1,447,506 897,610 1,042,220 966,910 70,683 50,500 50,500 50,500 377,355 75,000 100,000 100,000 185,646 154,800 158,165 155,300 14, 576,216 14,285,293 14,528,445 15,041,367 228,772 221,246 221,246 177,180 14, 804,988 14,506,539 14,749,691 15,218,547 24,769,329 26,055,989 26,299,141 26,262,870 6,043,746 711,174 4,299,053 1,755,904 210.002 13,019,879 200,000 13,219,879 6,583,354 910,213 5,175,463 2,071,583 235.000 14,975,613 14,975,613 $ 11,549,450 $ 11,080,376 Change in Fund Balance $ 1,585,109 16% 6,675,191 961,467 5,188,477 2,070,983 265.000 15,161,118 93,700 7,019,657 940,041 5,365,555 2,157,902 235,000 15,718,155 15, 254, 818 15, 718,155 $ 11,044,323 $ (469,074) $ (505,127) -4% -4% $ 10,544,715 $ (499,608) -5% City of Andover Special Revenue Funds 2025 Budget Summary - All Special Revenue Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In N w Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,973,431 193,630 616,536 1,560,172 125,618 976,519 3,472,475 3,472,475 5,445,906 906,759 114,131 757,055 254,941 788,436 2,821,322 308,300 3,129,622 $ 2,316,284 Change in Fund Balance $ 342,853 17% $ 2,316,284 $ 2,316,284 $ 2,478,986 195,000 412,500 1,273,000 8,400 195,000 512,500 1,383,000 28,100 856,068 965,993 2,744,968 3,084,593 2,744,968 5,061,252 942,630 116,170 407,886 753,917 400,000 2,620,603 308,000 2,928,603 $ 2,132,649 $ (183,635) -8% 3,084,593 5,400,877 942,630 138,620 425,986 657,117 449,538 2,613,891 308,000 2,921,891 $ 2,478,986 $ 162,702 7% 195,000 112,500 1,326,000 14,250 869,968 2,517,718 2,517,718 4,996,704 992,122 124,420 304,212 895,314 1,008,000 3,324,068 310,100 3,634,168 $ 1,362,536 $ (1,116,450) -45% Actual Adopted Estimate 1 Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In N w Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,973,431 193,630 616,536 1,560,172 125,618 976,519 3,472,475 3,472,475 5,445,906 906,759 114,131 757,055 254,941 788,436 2,821,322 308,300 3,129,622 $ 2,316,284 Change in Fund Balance $ 342,853 17% $ 2,316,284 $ 2,316,284 $ 2,478,986 195,000 412,500 1,273,000 8,400 195,000 512,500 1,383,000 28,100 856,068 965,993 2,744,968 3,084,593 2,744,968 5,061,252 942,630 116,170 407,886 753,917 400,000 2,620,603 308,000 2,928,603 $ 2,132,649 $ (183,635) -8% 3,084,593 5,400,877 942,630 138,620 425,986 657,117 449,538 2,613,891 308,000 2,921,891 $ 2,478,986 $ 162,702 7% 195,000 112,500 1,326,000 14,250 869,968 2,517,718 2,517,718 4,996,704 992,122 124,420 304,212 895,314 1,008,000 3,324,068 310,100 3,634,168 $ 1,362,536 $ (1,116,450) -45% N A City of Andover Debt Service Funds 2025 Budget Summary - All Debt Service Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 3,491,233 $ 3,819,273 $ 3,819,273 $ 3,635,008 3,740,870 89,027 3,829,897 895,300 4,725,197 8,216,430 3,125,000 1,260,997 11,160 4,397,157 4,397,157 Fund Balance, December 31 $ 3,819,273 Change in Fund Balance $ 328,040 9% 3,891,710 3,891,710 845,300 4,737,010 8,556,283 3,240,000 1,162,366 7,200 4,409,566 60,854 4,470,420 $ 4,085,863 $ 266,590 7% 3,891,710 7,300 3,899,010 845,300 4,744,310 8,563,583 3,240,000 1,162,366 10,450 4,412,816 515,759 4,928,575 $ 3,635,008 $ (184,265) -5% 129.1-191191H 4,881,034 854,407 5,735,441 9,370,449 2,980,000 1,231,862 8,400 4,220,262 4,220,262 $ 5,150,187 $ 1,515,179 42% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Investment Income Total Revenues: Other Sources Operating Transfers In Total Revenues and Other Sources Total Available: Expenditures Debt Service Principal Interest Other Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: $ 3,491,233 $ 3,819,273 $ 3,819,273 $ 3,635,008 3,740,870 89,027 3,829,897 895,300 4,725,197 8,216,430 3,125,000 1,260,997 11,160 4,397,157 4,397,157 Fund Balance, December 31 $ 3,819,273 Change in Fund Balance $ 328,040 9% 3,891,710 3,891,710 845,300 4,737,010 8,556,283 3,240,000 1,162,366 7,200 4,409,566 60,854 4,470,420 $ 4,085,863 $ 266,590 7% 3,891,710 7,300 3,899,010 845,300 4,744,310 8,563,583 3,240,000 1,162,366 10,450 4,412,816 515,759 4,928,575 $ 3,635,008 $ (184,265) -5% 129.1-191191H 4,881,034 854,407 5,735,441 9,370,449 2,980,000 1,231,862 8,400 4,220,262 4,220,262 $ 5,150,187 $ 1,515,179 42% City of Andover Capital Projects Funds 2025 Budget Summary - All Capital Projects Funds Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Ln Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 38,834,582 $ 38,647,330 $ 38,647,330 $ 43,061,494 2,357,361 100,476 1,114,953 3,473,567 1,830,303 805,958 153,645 9,836,263 708,300 86,059 794,359 10,630,622 49,465,204 8,601,188 1,532, 741 10,133,929 683,945 10,817,874 $ 38,647,330 2,434,438 100,475 1,301,000 7,571,040 97,500 409,490 295,000 12,208,943 969,854 1,580,000 2,549,854 14,758,797 53,406,127 94,000 7,720,893 13,038,000 20,852,893 995,227 21, 848,120 $ 31,558,007 Change in Fund Balance $ (187,252) $ (7,089,323) 0% -18% 2,434,438 100,582 1,453,122 7,575,331 319,500 1,680,355 165,717 13,729,045 1,518,459 9,205,000 33,600 10,757,059 24,486,104 63,133,434 193,255 7,284,963 11,598,495 19,076,713 995,227 20.071.940 $ 43,061,494 $ 4,414,164 11% 3,184, 868 70,000 2,187, 000 5,693,153 77,500 260,685 340,000 11, 813,206 710,100 710,100 12,523,306 55,584,800 14, 521,126 4,176, 807 18,697,933 568,281 19,266,214 $ 36,318,586 $ (6,742,908) -16% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues General Property Taxes Tax Increments Special Assessments Intergovernmental Investment Income User Charges Miscellaneous Total Revenues: Other Sources Transfers In Ln Bond Proceeds Proceeds from Sale of Capital Assets Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 38,834,582 $ 38,647,330 $ 38,647,330 $ 43,061,494 2,357,361 100,476 1,114,953 3,473,567 1,830,303 805,958 153,645 9,836,263 708,300 86,059 794,359 10,630,622 49,465,204 8,601,188 1,532, 741 10,133,929 683,945 10,817,874 $ 38,647,330 2,434,438 100,475 1,301,000 7,571,040 97,500 409,490 295,000 12,208,943 969,854 1,580,000 2,549,854 14,758,797 53,406,127 94,000 7,720,893 13,038,000 20,852,893 995,227 21, 848,120 $ 31,558,007 Change in Fund Balance $ (187,252) $ (7,089,323) 0% -18% 2,434,438 100,582 1,453,122 7,575,331 319,500 1,680,355 165,717 13,729,045 1,518,459 9,205,000 33,600 10,757,059 24,486,104 63,133,434 193,255 7,284,963 11,598,495 19,076,713 995,227 20.071.940 $ 43,061,494 $ 4,414,164 11% 3,184, 868 70,000 2,187, 000 5,693,153 77,500 260,685 340,000 11, 813,206 710,100 710,100 12,523,306 55,584,800 14, 521,126 4,176, 807 18,697,933 568,281 19,266,214 $ 36,318,586 $ (6,742,908) -16% City of Andover Enterprise Funds 2025 Budget Summary - All Enterprise Funds Statement of Revenues, Expenditures and Changes in Fund Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets rn Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 12,217,398 $ 13,042,642 $ 13,042,642 $ 11,426,558 7,501,501 482,527 36,544 6,464,757 62,500 13,000 6,464,757 62,500 13,000 54,799 44,000 44,000 8,075,371 6,584,257 6,584,257 133,945 15,795 149,740 8,225,111 20,442,509 1,283,446 549,843 3,087,804 684,666 775,036 6,380,795 1,019,072 7,399,867 $ 13,042,642 Change in Unrestricted Net Assets $ 825,244 7% 294,227 294,227 6,878,484 19,921,126 1,331,896 547,600 3,447,319 1,935,000 86,807 7,348,622 966,546 8,315,168 $ 11,605,958 $ (1,436,684) -11% 294,227 294,227 6,878,484 19,921,126 1,331,896 547,600 3,491,719 2,070,000 86,807 7,528,022 966,546 8,494,568 $ 11,426,558 $ (1,616,084) -12% 6,828,858 62,500 13,000 44,000 6,948,358 59,174 174 7,007,532 18,434,090 1,420,585 654,300 3,474,326 364,000 5,913,211 922,480 6,835,691 $ 11,598,399 $ 171,841 2% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 20, 2025 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Meters Permits Penalties Miscellaneous Total Revenues: Other Sources Transfers In Gain on the Sale of Capital Assets rn Total Other Sources: Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Other Services and Charges Capital Outlay Debt Service Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 $ 12,217,398 $ 13,042,642 $ 13,042,642 $ 11,426,558 7,501,501 482,527 36,544 6,464,757 62,500 13,000 6,464,757 62,500 13,000 54,799 44,000 44,000 8,075,371 6,584,257 6,584,257 133,945 15,795 149,740 8,225,111 20,442,509 1,283,446 549,843 3,087,804 684,666 775,036 6,380,795 1,019,072 7,399,867 $ 13,042,642 Change in Unrestricted Net Assets $ 825,244 7% 294,227 294,227 6,878,484 19,921,126 1,331,896 547,600 3,447,319 1,935,000 86,807 7,348,622 966,546 8,315,168 $ 11,605,958 $ (1,436,684) -11% 294,227 294,227 6,878,484 19,921,126 1,331,896 547,600 3,491,719 2,070,000 86,807 7,528,022 966,546 8,494,568 $ 11,426,558 $ (1,616,084) -12% 6,828,858 62,500 13,000 44,000 6,948,358 59,174 174 7,007,532 18,434,090 1,420,585 654,300 3,474,326 364,000 5,913,211 922,480 6,835,691 $ 11,598,399 $ 171,841 2% N J City of Andover Internal Service Funds 2025 Budget Summary - All Internal Service Funds Statement of Revenues, Expenditures and Changes in Unrestricted Net Assets Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 770,306 $ 1,209,835 1,827,850 32,646 29,370 1,889,866 245,000 2,134,866 2,905,172 623,610 433,791 637,936 1,695,337 1,695,337 $ 1,209,835 $ 439,529 57% 1,885,225 4,000 1,889,225 1,889,225 3,099,060 651,538 507,420 680,509 1,839,467 1,839,467 $ 1,259,593 $ 49,758 4% $ 1,209,835 $ 1,268,093 1,885,225 4,000 1,889,225 1,965,601 4,000 1,969,601 1,889,225 1,969,601 3,099,060 3,237,694 655,538 507,420 668,009 1,830,967 1,830,967 $ 1,268,093 $ 58,258 5% 693,838 522,920 703,093 1,919,851 1,919,851 $ 1,317,843 $ 49,750 4% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Unrestricted Net Assets, January 1 Revenues Charges for Services Interest Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures and Other Uses Personal Services Supplies and Materials Other Services and Charges Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Unrestricted Net Assets, December 31 Change in Unrestricted Net Assets $ 770,306 $ 1,209,835 1,827,850 32,646 29,370 1,889,866 245,000 2,134,866 2,905,172 623,610 433,791 637,936 1,695,337 1,695,337 $ 1,209,835 $ 439,529 57% 1,885,225 4,000 1,889,225 1,889,225 3,099,060 651,538 507,420 680,509 1,839,467 1,839,467 $ 1,259,593 $ 49,758 4% $ 1,209,835 $ 1,268,093 1,885,225 4,000 1,889,225 1,965,601 4,000 1,969,601 1,889,225 1,969,601 3,099,060 3,237,694 655,538 507,420 668,009 1,830,967 1,830,967 $ 1,268,093 $ 58,258 5% 693,838 522,920 703,093 1,919,851 1,919,851 $ 1,317,843 $ 49,750 4% CITY OF ANDOVER General Fund Revenue & Expense Summary EXPENDITURES Actual Actual Actual - Actual Actual Budget Estimate Requested" Budget Change (") General Government 2019 2020 2021 2022 2023 2024 2024 2025 $ % REVENUES 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% TOTALREVENUES 12,327,212 12,686,944 12,813448 13457,703 14,804,988 14,506539 14,749691 15218,547 712,008 4.83% EXPENDITURES General Government 2,843,957 2,906,325 3,020,260 3,222,596 3,291,004 3,985,287 3,997,845 4,110,680 125,393 3.15% N co Public Safety 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,590,730 6,906,908 442,754 6.85% Public Works 3,148,743 3,314,542 3,522,626 3,624,481 3,904,812 4,430,572 4,476,943 4,603,967 173,395 3.91% Other 15,001 1,012,778 766,109 567,396 223,436 95,600 189,300 96,600 1,000 1.05% TOTAL EXPENDITURES 11,099,494 12395,879 12,841,424 13119,831 13,219879 14,975,613 15,254,818 15,718155 742,542 4.969 UNDER(OVER)BUDGET $ 1,227,718 $ 291,065 $ 27976 $ 337,872 $ 1585,109 $ 469074 $ 505,127 $ 499608 $ 30,534 N LID 7ai Property Taxes License and Permits Intergovernmental Revenues Charges for Services Fines and Forfeits Interest Income Miscellaneous Revenue Transfers TOTAL REVENUES CITY OF ANDOVER Revenue Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2021 2022 2023 2023 2024 2025 Proper Taxes $ 9,527,670 $ 9,974,141 $ 10,663,259 $ 11,621,126 $ 11,621,126 $ 12,188,182 891,762 972,878 854,738 617,600 722,175 668,850 939,174 963,290 977,028 868,657 834,259 911,625 1,036,850 1,295,429 1,447,507 897,610 1,042,220 966,910 53,747 55,983 70,683 50,500 50,500 50,500 (15,183) (189,494) 377,355 75,000 100,000 100,000 167,397 188,395 185,646 154,800 158,165 155,300 212,031 197,081 228,772 221,246 221,246 177,180 $ 12,813,448 $ 13,457,703 $ 14,804,988 $ 14,506,539 $ 14,749,691 $ 15,218,547 0 Budget 2025 0 Estimate 2024 0 Actual 2023 a Actual 2022 -Actual 2021 City of Andover 2025 Revenue by Source -General Fund Misc. Rev 1% Interest Income Transfers 1% 1°� Fines &Fodeits 0°h Charges for Svcs 6% Inlergov'I Rev 6% Licenses 8 Permits 5% Property City of Andover 2025 Revenue Comparison - General Fund Proper Taxes Licenses & ertnits Imer9 v'I Rev Charges r Svcs 7 Fines & oReits Interest Income Mi ic. Rev T 3nsfers $2.00 $6.00 $10.00 $14.00 -$2.00 MII Ions 0 Budget 2025 0 Estimate 2024 0 Actual 2023 a Actual 2022 -Actual 2021 City of Andover 2025 Revenue by Source -General Fund Misc. Rev 1% Interest Income Transfers 1% 1°� Fines &Fodeits 0°h Charges for Svcs 6% Inlergov'I Rev 6% Licenses 8 Permits 5% Property 7 Taxes 80 W O EXPENDITURES General Govemment Public Safety Public Works Other TOTAL EXPENDITURES CITY OF ANDOVER Expenditure Comparison - General Fund Actual Actual Actual Budget Estimate Budget 2021 2022 2023 2024 2024 2025 $ 3,020.260 24% $ 3,222,596 25% $ 3,291,004 25% $ 3.985.287 27% $ 3.997,845 26% $ 4,110,680 26% 5,532,429 43% 5,705,358 43% 5,800,627 44% 6.464,154 43% 8,590.730 43% 6,906,908 44% 3,522,626 27% 3,624,481 28% 3,904,812 30% 4,430,572 30% 4,476,943 29% 4,603,967 29% 766,109 6% 567,396 4% 223,436 2% 95,600 1% 189,300 1% 96,600 1% $ 12,841,424 $ 13.119,831 $ 13,219,879 $ 14,975,613 $ 15,254,818 $ 15,718,155 City of Andover 2025 Expenditure Comparison - General Fund General Govt Public Safety Public Works Other $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Millions 0 Budget 2025 ■ Estimate 2024 4 Actual 2023 • Actual 2022 • Actual 2021 City of Andover 2025 Expenditures by Function - General Fund Other 1% General Go W 26% Public Works 29% Public Safety 44% CITY OF ANDOVER General Fund -Expenditure Budget Summary Totals - By Department Budget Year 2025 PUBLICSAFETY Actual Actual Actual Actual Actual Budget- Estimate Requested* Change(*) lsl Police Protection 2019 2020 2021 2022 2023 2024 2024 2025 $ % GENERAL GOVERNMENT 1,391,252 1,508,854 1,706,876 1,961,915 1,926,998 2,120,451 2,251,510 2,332,343 211,892 9.99% Mayor and Council $ 99,001 $ 95,519 $ 95,658 $ 95,366 $ 99,860 $ 112,042 $ 105,042 $ 111,874 (168) -0.15% Administration 211,898 187,758 229,314 245,222 278,092 303,714 301,114 319,666 15,952 5.25% 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 99,722 (34,772) -25.85% Attorney 191,782 195,721 199,809 206,399 207,922 223,486 221,000 227,836 4,350 1.95% City Clerk 160,184 166,221 175,177 184,318 193,217 204,009 204,009 212,760 8,751 4.29% Elections 20,452 91,643 20,260 75,115 - 28,002 90,906 90,906 92,088 1,182 1.30% Finance 280,199 294,501 307,009 320,729 335,992 360,343 360,759 385,635 25,292 7.02% Assessing 149,033 154,482 128,829 131,097 136,705 161,000 161,000 161,000 0 0.00% Information Services 169,827 187,703 185,642 226,588 235,842 249,184 249,184 277,824 28,640 11.49% Planning & Zoning 412,282 453,133 491,395 490,576 473,193 570,506 571,111 583,871 13,365 2.34% Engineering 561,642 566,224 594,720 649,664 703,515 755,758 758,881 789,877 34,119 4.51% Facility Management 547,402 475,083 548,666 552,986 549,759 783,845 808,345 812,527 28,682 3.66% Total General Gov 2,843,957 2,906,325 3,0209260 3,222,596 3,291,004 3,985,287 3,997,845 4,110,680 125,393 3.15 PUBLICSAFETY lsl 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 2,251,510 2,332,343 211,892 9.99% Protective Inspection 493,955 519,183 519,787 464,560 501,561 557,917 558,434 586,874 28,957 5.19% Emergency Management 18,608 17,227 15,203 12,296 19,958 34,987 34,987 39,759 4,772 13.64% Animal Control 4,368 2,347 3,517 5,164 4,795 10,950 5,950 10,950 0 0.00% Total Public Safety 5,091,793 5,162,234 5,532,429 5,705,358 5,800,627 6,464,154 6,590,730 6,906,908 442,754 6.85% PUBLIC WORKS Streets and Highways 615,450 686,978 804,392 788,330 899,542 994,486 1,015,073 1.056,369 61,883 6.22% Snow and Ice Removal 703,647 496,668 540,226 752,396 771,857 901,461 901,461 925,753 24,292 2.69% Street Signs 202,996 257,281 196,782 194,276 169,472 221,186 221,186 229,960 8,774 3.97% 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 1,805,192 1,853,048 73,640 4.14% Natural Resource Preservatim 16,831 9,821 9,738 15,932 10,946 17,022 17,022 17,207 185 1.09% OTHER 15,001 1,012,778 766,109 567,396 223,436 95,600 189,300 96,600 1,000 1.05% Total Other 15,001 1,012,778 766,109 567,396 223,436 95,600 189,300 96,600 1,000 1.05% GRAND TOTAL $ 11,099,494 $ 12,395,879 3 12,841,424 $ 13,119,831 $ 13,219,879 $ 14,975,613 $ 15,254,818 $ 15,718,155 742,542 4.96% w N MUNICIPALITIES WITHIN ANOKA COUNTY Proposed 2025 City Tax Rate Comparison Munici alitie Onl Hilltop 100.118 Columbia Heights 72.540 St. Francis 53.74 Circle Pines 47.038 Spring Lake Park 46.106 Ramsey 45.999 Fridley 44.093 Bethel 43.365 Anoka 41.864 a Lexington 41.775 3 Centerville 40.266 yt U Lino Lakes 40.213 Columbus 39.632 Coon Rapids 39.460 Blaine 39.049 Andover 36 280 East Bethel 31.966 Oak Grove 25.880 Nowthen 22.243 Linwood 22.104 Ham Lake 19.154 0.000 20.000 40.000 60.000 80.000 100.000 120.000 TAX RATE W Lk) CITY OF ANDOVER 2025 Proposed Tax Breakdown Other County 3.009% 29.279% School District 32.505% City 35.207% PERCENTAGES ARE PROPORTIONAL TO REFLECT 100% RATHER THAN ACTUAL AMOUNT $4,409.40; EMV $435,300. CITY OF ANDOVER 2025 General Fund Revenue Types Interest Income Intergovernmental Fines & Forfeits 0 1% ° Transfer 0% Charges for Miscellaneous 1 % Services 1% 6% License & Permits 5% w .A Property Taxes 80% Publi Z w Ln CITY OF ANDOVER 2025 General Fund Expenditures Other 0.6% by Function General Government Public Safety 43.9% CITY OF ANDOVER General Fund - General Government Expenditures Administration Council 8% Newsletter Human Resources Facility Mgmt� 2.7% 0.9% 19.8% 2.4% Attorney 5.5% City Clerk y} _ 5.2% f' Elections 2.2% Engineering Finance 19.2%9.4 /o Assessing Planning & Zoning Information Systems 3.9% 14.2% 6.8% w Fire Protection 33.8% CITY OF ANDOVER General Fund - Public Safety Expenditures i..,...---;-- Fmcrnanry Mnnnnamcnt Animal (.nntrol rouce rrotection 57.0% R Natural Resource Preservation Parks & Recreation 40.2% CITY OF ANDOVER General Fund Street Lights 4.0% Public Works Expenditures -Recycling .ri Qo/ acreec ugnung 1.00% 1.0% t Signs 0% Streets & Highways 22.9% Snow & Ice 20.1%