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HomeMy WebLinkAboutSigned Minutes 10-09-20 Budget RetreatMinutes of the Arlington City Council Zoom Retreat October 9, 2020 Councilmembers Present: Mike Hopson, Marilyn Oertle, Jan Schuette, Jesica Stickles, Don Vanney (joined at 2:30 p.m.), and Michele Blythe. Council Members Absent: Debora Nelson, excused. Staff Present: Mayor Barb Tolbert, Paul Ellis, Bryan Terry, Kristin Garcia, Jim Kelly, Dave Ryan, Jonathan Ventura, Dave Kraski, Marc Hayes, James Trefry, Wendy Van Der Meersche. Mayor Barb Tolbert called the retreat to order at 2:00 pm, and the Pledge of Allegiance and roll call followed. APPROVAL OF THE AGENDA Mayor Pro Tern Jesica Stickles moved to approve the agenda as presented. Councilmember Marilyn Oertle seconded the motion, which passed with a unanimous vote. Mayor Tolbert welcome everyone, and introduced City Attorney Steve Peiffle as facilitator. Mr. Peiffle reviewed rules and procedures, and turned the retreat over to City Administrator Paul Ellis. DISCUSSION ITEMS - NO ACTION WAS TAKEN 2021-2022 Budget Mr. Ellis began with a review of the slide deck for the 2021-2022 Budget. 2021/2022 Budget Overview • No new discretionary spending "Hold the line" budget Fiscal sustainability FINANCIAL ASSUMPTIONS General Revenue Assumptions General Property Tax - 1% plus new construction, plus banked capacity EMS Tax Levy - 1% plus new construction Retail sales tax - 3% over 2019 actuals Ambulance Utility Fee - $15 per unit in 2021, $30 per unit in 2022 Water, Sewer, Storm - no rate increases Cemetery - no rate increases Airport - land rentals adjust by appraisal, buildings adjust by CPI General Expense Assumptions Page 1 of 5 Minutes of the City of Arlington City Council Workshop October 9. 2020, No new department discretionary spending 2020 discretionary spending reductions carried forward Liability insurance premiums increasing 4.3%, increased 5% in 2022 Property premiums increasing 9%, increased 5% in 2022 No new lodging tax grants awarded in 2021, new grants in 2022 Art fund to award grants in 2021 and 2022 Expense Assumptions - Staffing Salary adjustments per union contracts Medical premiums expected to increase up to 7.5% in 2021 Dental premiums expected to increase up to 3% in 2021 Eliminated shared administrative assistant position Two unfilled positions Communications manager Maintenance & Operations Four new public safety positions added Police support officer TL_____ TTT- C-___ J_J]__�_� nr cam_ 1 hr ee C 1 Es lu1 deu Cate, " , n't CAPITAL IMPROVEMENTS Capital Improvements for 2021-2022 Department / Division 2021 7= W. evenue AirpurE $3,992,110 FAA grant, Airport operation reserves Parks • Evans Park Capital Facilities $100,000 $4,501,000 ($1 million expected to `be spent in 2020) Economic Development $505,000 • Fiber and Innovation Center Utilities Transportation TOTAL Airport $18,010,308 $14,581,883 $41,690,301 Park mitigation Bonds Grant, REET 1 funding Water, Sewer, Storm operations Grants, traffic mitigation, two tenths of one percent sales tax (TBD) Page 2 of 5 Minutes of the City of Arlington City Council Workshop October 9. 2020 2021 $167,000 obstruction survey $715,000 fencing 2022 $3,110,110 Runway 16/34 overlay (Projects expected to be funded 90% by FAA grant.) Parks 2021 $100,000 Evans Park Roof Backstop Fencing ADA sidewalk and playground improvements $10,000 per year for safety/repairs to parks York Park - landscape, irrigation upgrades Quake Park - replace pea gravel and lay chips, ADA path to restrooms Forest Trail Park - replace parking lot curbing, basketball court updates, landscaping Jensen Park - shelter renovation, picnic table upgrades Terrace Park - shelter lighting Capital Facilities Issued $5,500,000 in 2020 for the construction of a new fire station, police impound facility and M&O facility. Budgeted to spend $4 million on Station 48 Budgeted to spend $1.5 million on the police impound and M&O facility Construction on Fire Station 48 will begin late 2020, so the majority of bond funds will be carried over into the 2021 budget. It is expected that the projects will be completed and bond funds fully spent by the end of 2021. Economic Development 2021 $205,000 Phase II Innovation Center Roof New concrete on lot Exterior paint Foyer remodel Heat/air conditioning $150,000 per year for Fiber Innovation Center project expected to be funded by a grant Page 3 of 5 Minutes of the City pf Arlington City Council Workshop October 9,2020 TRANSPORTATION/UTILITIES Utilities Water main replacements Water treatment plant design/construction Gleneagle and 520 reservoir improvements Wastewater equalizing basin improvements Wastewater membrane replacements Prairie Creek culvert The 2021/2022 budget includes $1.4 million of anticipated grant revenue Transportation 173rd Construction 40th Ave/SR 531 Intersection SR 530 Roundabout The 2021-2022 transportation improvement budget includes $6.5 million in anticipated grant revenue. Conclusion Continue monitoring revenues and expenses New program requests will be reviewed/discussed at April retreat Potential budget adjustments pending outcome of RFA Next steps Council Workshop Re -cap of 2021/2022 preliminary budget Orroher 26 • Preliminary budget available to public • Review proposed 2021 pneralproperty tax and EMS tax levies Council Meeting . Public hearing on proposed 2021 general property tax and EMS November 2 tax levies • Public hearing on proposed 2021/2022 budget Council Workshop • Follow up discussion on preliminary budget/tax levies (if needed) November 9 Council Meeting • Adopt resolutions setting the 2021 regular property tax levy and November 16 the EMS tax levy • Adopt 2021/2022 Budget Ordinance Council Workshop . Review 2020 budget amendments November 23 Council Meeting • Public hearing on proposed budget amendments December 7 • Adopt Ordinance for 2020 budget amendments Discussion followed with City Administrator Paul Ellis and Finance Director Kristin Garcia answering Council questions. With additional time remaining, Mr. Ellis asked Council to refer to the slide deck for the RFA Annexation Levy follow-up. Page 4 of 5 Minutes of the City of Arlington City Council Workshop October 9, 2020 Mr. Ellis stated that the RFA Council retreat was held in June, with Council being kept informed of the RFA committee's meetings. Over the next two Council workshops, discussions will continue. On November 2, Council will vote whether to adopt the North County Regional Fire Authority's (NCRFA) plan, and approve the resolution to put this before voters on the February 9, 2021 special election ballot. Estimated Cost to Taxpayer Annexation Scenario 2O1210 2021 2022 2022 No Annexation Witli Annexation City General Levy $1.42 $1.35 $1.29 $.82 City EMS Levy $.33 $.32 $.30 0 RFA Fire Levy $1.47 RFA EMS Levy $.35 SUBTOTAL $1.75 $1.67 $1.59 ,$2.64 AMBULANCE $180 per year $180 per year $360 per year $0 UTILITY FEE ($15 per month) ($15 per ($30 per month) month) ANNUAL COST FOR A $880 $848 $996 $1,056 HOME OF $400,000 General Tax Levy If the City retains $.82 of its 2022 tax levy (an approximate $.50 cent reduction), the City gains about $677,000 in revenue. Proposed Use of Tax Revenue SR 530 Roundabout 169th gap Discussion followed with Mr. Ellis answering Council questions. ADJOURNMENT The retreat was adjourned at 4:09 p.m. Barbara Tolbert, Mayor Page 5 of 5