City Council

HOPKINS CITY COUNCIL AGENDA Tuesday, October 10, 2023 6:30 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING I. CALL TO ORDER II. ADOPT AGENDA III. PRESENTATIONS IV. CONSENT AGENDA 1. Minutes of the October 3, 2023, City Council Regular Meeting Proceedings 2. Second Reading: Ordinance 2023-1201 Amending Article 5, Chapter 102 of the City Code Regarding Office Uses in Mixed Use Zones; Krzos 3. Approval of 2023 MOU with LELS #171 regarding wages; Lenz 4. Approval of 2024-2026 Contract with LELS #171; Lenz V. PUBLIC HEARINGS VI. OLD BUSINESS VII. NEW BUSINESS 1. Special Revenue Fund Budgets and Activity Center Budget Review; Bishop 2. Enterprise Fund Budgets and Utility Rate Review; Bishop VIII. PUBLIC COMMENT IX. ANNOUNCEMENTS • Next City Council Regular Meeting: October 17 at 6:30 p.m. X. ADJOURN  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS OCTOBER 3, 2023 CALL TO ORDER Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council was held on Tuesday, October 3, 2023, at 6:31 p.m. in the Council Chambers at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Balan, Beck, Garrido and Hunke attending. Others attending included City Clerk Domeier, Finance Director Bishop, Special Projects and Initiatives Manager Imihy Bean, Director of Planning and Development Elverum, City Planner Krzos, Public Works Director Autio, City Engineer Klingbeil and City Attorney Riggs. ADOPT AGENDA Mayor Hanlon pulled Consent Agenda items IV.4 Approval of 2023 MOU with LELS #171 regarding wages and IV.5. Approval of 2024-2026 Contract with LELS #171. He requested discussion at the October 10 meeting to ensure wages are competitive. Motion by Beck. Second by Balan. Motion to Adopt the Agenda with changes. Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. CONSENT AGENDA Motion by Beck. Second by Balan. Motion to Approve the Consent Agenda. 1. Minutes of the September 19, 2023, City Council Regular Meeting Proceedings 2. Resolution Appointing Election Judges for the November 7, 2023, General Election; Domeier 3. Ratify Checks Issued in September 2023; Bishop 4. Approval of 2023 MOU with LELS #171 regarding wages; Lenz 5. Approval of 2024-2026 Contract with LELS #171; Lenz 6. Approval of a Cross Easement Related to Cottageville Park with the Minnehaha Creek Watershed District; Imihy Bean 7. Authorize Entering into a one-year Agreement with ZEF Energy; Imihy Bean Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. NEW BUSINESS VII.1. Approvals for a Planned Unit Development and Conditional Use Permit at Cassia Chapel View Care Center – 412 5th Ave. N.; Krzos City Planner Krzos summarized Council Report 2023-103. Augustana Land Development LLC requested land use approvals to allow a redevelopment of the former Mizpah Church at 412 5th Avenue North. Lynn Bialick, 320 5th Avenue North, Hopkins, did not support the project.  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS OCTOBER 3, 2023 Council Member Beck did not have concerns about the trash location but found bike parking to be important. Council Member Hunke questioned the trees in the landscaping plan and the opportunity to contribute to City’s tree fund. Mr. Krzos stated the applicant was not deficient in the tree amount but there are options with the PUD. An amendment to the landscaping plan will be included in the second reading. Mr. Hunke also spoke about preserving the homes on 5th Avenue as well as maintenance. He also questioned the plans for the existing facility to which the applicant provided the opportunity to keep the existing care facility with a renovation to an assistant living building or do a market study that may warrant a new facility. Council Member Beck asked the applicant to be mindful of the concerns about the rental homes. Mayor Hanlon requested that the trash be located inside, the project include adequate options for bike storage, and questioned the setbacks from the homes. He requested the second story be setback, spoke to options for sustainable building and more information on code violations. Council Member Balan also wanted to hear more about the code violations. He did not think bike parking was necessary. Due to the number of proposed changes, Mr. Krzos recommended adding conditions to the PUD site plan approval for the next meeting. Motion by Hunke. Second by Beck. Motion to Adopt Resolution 2023-033, approving a First Reading of the PUD Overlay Rezoning Ordinance and granting PUD Site Plan approval for 412 - 5th Ave N. Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. Motion by Beck. Second by Garrido. Motion to Resolution 2023-034, approving a Conditional Use Permit allowing an 88-bed Skilled Nursing Facility at 412 - 5th Ave N., including approval of a one- year extension. Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. VII.2. First Reading: Ordinance Amending Article 5, Chapter 102 of the City Code Regarding Office Uses in Mixed Use Zones; Krzos City Planner Krzos summarized Council Report 2023-106. In the time since the code was adopted, staff have fielded inquiries from prospective office tenants about occupying several spaces within the first floor of Mainstreet buildings. As a result, staff revisited this policy given the apparent disconnect with market demand. Discussion was held about the office use options for corner lot buildings and the opportunity to allow more flexibility for office uses. Mayor Hanlon, Council Members Beck and Balan wanted to see flexibility in the code but Council Members Hunke and Garrido did not support having office uses on a corner lot.  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS OCTOBER 3, 2023 Motion by Hunke. Second by Balan. Motion to Adopt for first reading, Ordinance 2023-1201, amending Article 5, Chapter102 of the City Code Regarding Office Uses in Mixed Use Zones. Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. VII.3. Resolution Ordering Public Improvement Hearing for the 2024 Street and Utility Improvements; Klingbeil City Engineer Klingbeil and Nick Amatuccio with Bolton and Menk summarized Council Report 2023-105. The City Council authorized Bolton & Menk, Inc. to prepare a feasibility report concerning street and utility improvements. Brief discussion was held about the assessments, proposed traffic speeds, road striping, cost to residents and opportunities for cost savings, funding partners and IGA opportunities. Motion by Balan. Second by Hunke. Motion to Adopt Resolution 2023-035 ordering a public improvement hearing for the 2024 Street and Utility Improvements. Ayes: Balan, Beck, Garrido, Hanlon, Hunke Nays: None. Motion carried. PUBLIC COMMENT Robert Oakes, 533 6th Avenue South, Hopkins, provided comments on the Park Valley truck route changes. Director of Public Work Autio stated a designated truck route has not been created and staff is working on signage. William Anderson, 102 Wayside Road West, Hopkins, thanked staff for the opportunity to partner with the Depot. He also requested that the American flag in the Council Chambers be higher than the rest of the flags. ANNOUNCEMENTS Mayor Hanlon reviewed the upcoming meeting schedule. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Balan, second by Hunke, the meeting was unanimously adjourned at 8:13 p.m. Respectfully Submitted, Amy Domeier, City Clerk  Planning & Development CITY OF HOPKINS City Council Report 2023-110 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: October 10, 2023 Subject: Second Reading of a Zoning Text Amendment for Office Uses in Mixed Use Zones. _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt for second reading, Ordinance 2023-1201, amending Article 5, Chapter 102 of the City Code Regarding Office Uses in Mixed Use Zones. BACKGROUND Ordinance 2023-1201 is unchanged from the first reading conducted at the October 3, 2023 City Council meeting. The proposed ordinance amendment would modify the current restriction against first floor office uses in the MX-D and MX-TOD zones. Specifically, in the MX-D Zone first floor office uses are allowed except within a building located at a street corner. In the MX-TOD zone, first floor office would not be allowed within space located nearer than 50 feet to the corner. Staff also acknowledges that further modifications could be considered in the future if circumstances warrant. SUPPORTING INFORMATION • Proposed Ordinance 2023-1201 Amending Article 5, Chapter 102 of the City Code Regarding Office Uses in Mixed-Use Zones  CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORIDNANCE 2023-1201 AN ORDINANCE AMENDING CHAPTER 102 OF THE HOPKINS CITY CODE REGARDING OFFICE USES IN CERTAIN MIXED-USE ZONES THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: SECTION 1. Hopkins City Code, Part III, Chapter 102, Article 5, Section 102-510 (a) Table 5-1, is hereby amended by adding the double-underlined language as follows: Table 5-1. Principal Use Table ZONES MX-TOD MX-D MX-N MX-S RX-TOD RX-D RX-N IX-TOD I-TOD IX-S N1, N2 N3-A N3-B NX1 NX2 I1 P1 P2 Reference COMMERCIAL 102-540 ◓ ◓ Office ● ● ● ● ● ● ● ● ● - - - - - - - 102-580(c) ◑ ◑ KEY: ● = Permitted ◓ = Permitted in Upper Stories Only ◐ = Limited to No More than 25% of Footprint ◑ = Limited on first floor to buildings on the interior of a block see 102-580(c) ○ = Requires Conditional Use Approval - = Prohibited SECTION 2. Hopkins City Code, Part III, Chapter 102, Article 5, Section 102-580 (c), is hereby amended by adding new subsection (c) with the double-underlined language as follows and re-lettering the subsequent subsections to increase by the next letter: 102-580 (c) OFFICE In the MX-D zone, office uses are allowed on the first floor only if said use is within a building that does not have two street frontages along intersecting streets. In the MX-TOD zone office uses are allowed on the ground floor only if all portions of the space accommodating said use are at least 50 feet from the nearest street corner of the block in which the building fronts on. Office uses are allowed in upper stories only in buildings nearer to the street corner in the MX-D and MX-TOD zones. SECTION 3. The effective date of this ordinance shall be October 19, 2023. First Reading: October 3, 2023 Second Reading: October 10, 2023 Date of Publication: October 19, 2023 Date Ordinance Takes Effect: October 19, 2023  By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk  Administration CITY OF HOPKINS City Council Report 2023-100 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ari Lenz, Assistant City Manager Date: October 10, 2023 Subject: Approval of 2023 MOU with LELS #171 regarding wages RECOMMENDED ACTION MOTION TO 2023 MOU with LELS#171 regarding wages OVERVIEW The City did a market study in early 2023 to better understand market conditions citywide. There was a market gap for sergeant compensation and due to the tight labor market for qualified police officers regionally, staff are recommending a wage adjustment in 2023 to the new recommended range resulting from the study. The MOU will approve a wage adjustment for the sergeants effective September 10, 2023 the date we were able to reach a contract for 2024-2026. Alternatively, the Council could not approve the MOU which would require staff to renegotiate with the union. Estimated budget impact from this change is $11,912. Due to other revenues being higher than expected, staff is comfortable with this budget impact in the 2023 budget. SUPPORTING INFORMATION • MOU with LELS#143  Memorandum of Understanding Between the City of Hopkins and Law Enforcement Labor Services, INC. Local # 171 2023 Wage Adjustment WHEREAS, City of Hopkins ( hereinafter the “City”) and Law Enforcement Labor Services, INC. 171 ( hereinafter the “Union”) are parties to a Collective Bargaining Agreement in effect from January 1, 2021 through December 31, 2023; and WHEREAS, the city conducted a market study to review citywide compensation and determined there was a market gap of sergeant compensation and there is a shortage of qualified licensed Police Officers regionally; and WHEREAS, the parties have come to an agreement as a means of retaining and recognizing the change in market conditions since the 2021 labor agreement was adopted; NOW THEREFORE BE IT RESOLVED that the parties mutually agree as follows: Effective September 10, 2023 the EMPLOYER will adjust the union compensation steps the following: Step 1 Union Step 2 Step 3 Promotion) After one year) After 2 years) 2023 $ 57.33/hr. $ 59.32/hr. $ 61.31/hr. The implementation of this new compensation system removes Article 18. Longevity and Educational Incentives from the contract and allows for employees to be placed on union steps in accordance to their agreed upon years of service and education with the Union. This Memorandum will remain in effect from September 10, 2023 through December 31, 2023. FOR THE CITY OF HOPKINS; FOR L.E.L.S., Local # 171 Patrick Hanlon, Mayor Darin Hill, Union Mike Mornson, City Manager  Administration CITY OF HOPKINS City Council Report 2023-101 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ari Lenz, Assistant City Manager Date: October 10, 2023 Subject: Approval of 2024-2026 Contract with LELS #171 RECOMMENDED ACTION MOTION TO Approve 2024-2026 Union Contract with LELS #171 This will ratify a three year contract with the Sergeants. OVERVIEW This item depends on the approval of the MOU regarding 2023 wages being presented tonight, this item should not be adopted if there are issues with the MOU for 2023. The contract calls for a 3.0% wage increase effective January 1, 2024, 2025 and 2026. The wages are within budget for 2024 and the insurance contributions are consistent with past practice and other pending union agreements. Primary issues to consider: • What other economic issues are included in the new contract? • Will the agreement keep the City Market competitive? • How does the agreement fit into the 2024 proposed budget. Analysis of Issues What other economic issues are included in the new contract? The agreement implements a minor adjustment to the uniform allowance, a $50 increase in 2024, an additional $50 increase in 2025 and an additional $50 increase in 2026. Uniform allowances have not been adjusted since 2017 and staff believe a minor increase is warranted given inflationary changes. The agreement adds a fitness incentive of 1.0% starting in January 2025, for those sergeants who are able to meet fitness related goals. The requirements of that program will be adopted by July 1, 2024 by Police Administration. This incentive is consistent with incentives provided by multiple other police agencies and we believe is necessary to stay competitive. Will the agreement keep the City market competitive? The compensation in this agreement is consistent with the Citywide market study results and we believe will put the City of Hopkins at the appropriate spot in the labor market. How does the agreement fit into the 2024 proposed budget. The agreement is within the budgeted amounts in the proposed budget. Estimated budget impact in 2024 is $32,354. SUPPORTING INFORMATION 2024-26 Union Agreement  Finance Department CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: October 10, 2023 Subject: Special Revenue Fund Budgets and Activity Center Budget Review _____________________________________________________________________ PURPOSE No formal action is required at this meeting. Staff is requesting input on the proposed budgets for special revenue funds. The proposed Activity Center fund budget is shown for informational purposes. INFORMATION Chemical Assessment Team Fund (Special Revenue) The State Chemical Assessment Team provides emergency response for assessment of chemical hazards, the maintenance of state owned equipment and training of personnel. The response area includes Hennepin, Scott, Carver, McLeod and Renville Counties. The State of Minnesota reimburses the City quarterly for actual costs. The Chemical Assessment Team does not receive any tax levy support from the City. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 65,000 $ 65,000 0.00% Expenditures $ 65,000 $ 65,000 0.00% Revenues over (under) Expenditures $ - $ -  Economic Development Fund (Special Revenue) The Economic Development Fund coordinates the economic development processes not directly funded by specific project budgets and also supports Artstreet and marketing. The main revenue sources of the fund are the Hopkins Housing and Redevelopment Authority (HRA) property tax levy and excess tax increment financing (TIF). A preliminary HRA levy of $487,653 was set on September 19th, excess TIF is budgeted at $50,000. The major expenditures of the fund are salaries, benefits and grants. The 2024 budget does include $100,000 for the Façade Improvement program. Staff is reviewing the current criteria to determine any modifications needed in 2024. Similar support to property & business owners will also being offered through the City’s American Rescue Plan Act funds. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 571,531 $ 557,706 -2.42% Expenditures $ 486,250 $ 520,278 7.00% Revenues over (under) Expenditures $ 85,281 $ 37,428 Parking Fund (Special Revenue) The Parking Fund accounts for activities related to parking enforcement and parking operations in the City. The major sources of revenue and parking permits, parking leases and fines. The revenue budget for parking permits has been reduced based on a decrease in permit sales due to trends caused by COVID-19. The major expenditures are salaries and benefits. The budget is projecting a decrease in fund balance of $34,894. The 12/31/2024 ending fund balance is projected to be a negative $56,660. Staff is in the initial stages of exploring options for the parking ramp such as gated access with automatic payment kiosks, which could increase revenue and decrease expenditures. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 143,250 $ 125,000 -12.74% Expenditures $ 158,610 $ 159,894 0.81% Revenues over (under) Expenditures $ (15,360) $ (34,894)  Communications Fund (Special Revenue) The Communications Fund provides two-way communication between the City and its residents, employees, businesses; its civic and service organizations; and other communities and government agencies. Some examples of the services provided are Hopkins Highlights, the City’s website and the State of the City event. The main source of revenue is cable franchise fees. The main expenditures are salaries, benefits and printing/mailing costs. The budget is projecting a decrease in fund balance of $51,487. The 12/31/2024 fund balance is projected to be a positive $89,346. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 230,000 $ 230,000 0.00% Expenditures $ 304,324 $ 281,487 -7.50% Revenues over (under) Expenditures $ (74,324) $ (51,487) Sustainability Fund (Special Revenue) The Sustainability Fund will be established in 2024. The fund will continue the Hopkins Climate Solution Fund grant program which offers incentives to residents and businesses to accelerate the transition to cleaner and more efficient energy. Grant funding available in 2024 is budgeted at $200,000. The current program has one-year of funding from the City’s ARPA allocation. The fund will also support one full-time employee and other costs related to sustainability. The source of revenue from the fund is gas and electric franchise fees. The City adopted ordinances to increase the fees beginning on 1/1/2024, with $385,000 of the increase going towards sustainability. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ - $ 385,000 100.00% Expenditures $ - $ 385,000 100.00% Revenues over (under) Expenditures $ - $ -  Depot Fund (Special Revenue) The Depot Fund will operate under a new model in 2024, with both Depot Coffee operations and the Depot Youth components being affected. The Depot Youth Board will still exist to fulfill the mission of providing a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment. The program will also be expanded to include youth workforce development through The ACE program. During it’s second year (2023) the ACE program provided nine young adults with resume-building professional experience through internships. The initial years of the program were funded by ARPA and a United Way grant. The 2024 budget includes support from Hopkins General Fund ($60,000), City of Minnetonka ($60,000), Hopkins School District ($50,000) and Three Rivers Park District ($19,500). As a result of issues stemming from the Green Line Extension and COVID-19 Pandemic, Depot Coffee operations were suspended in early 2023. The fund ended 2022 with a deficit fund balance of $214,597. The City of Hopkins, Three Rivers Park District, the City of Minnetonka and the Hopkins School District issued a request for services seeking a business operator for the Depot in 2024. Based on increased contributions from the City’s General Fund, the City of Minnetonka and lease revenue from a private operator the fund is projected to increase its fund balance by $20,000 and end 2024 with a deficit fund balance of $180,000. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 248,224 $ 203,832 -17.88% Expenditures $ 263,224 $ 183,832 -30.16% Revenues over (under) Expenditures $ (15,000) $ 20,000  Arts Center Fund (Special Revenue) The Hopkins Center for the Arts is a premiere cultural and artistic destination drawing over 250,000 visitors annually. Its amenities include a 715 seat theater, black-box theater, art gallery, dance studio, classroom, meeting and multipurpose spaces. The main revenue sources are property tax levy, rents, leases, ticket sales, grants, and transfers in. The preliminary tax levy amount of $345,000, includes both $316,467 needed to sustain current operations and also $28,533 to reduce the deficit owed to the City’s General fund. The fund will also receive the remaining ARPA allocation of $136,052 in 2023 to further reduce the fund balance deficit. Major expenditures include salaries, benefits and payments to artists. The fund is projected to end 2024 with a deficit of $132,619. This is an improvement of $887,401 since 1/1/2021. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 1,087,458 $ 1,172,650 7.83% Expenditures $ 1,027,458 $ 1,144,097 11.35% Revenues over (under) Expenditures $ 60,000 $ 28,553 Activity Center (General Fund) The Hopkins Activity Center is a community facility with a gym, kitchen and meeting rooms. The Activity Center’s mission is to provide pathways to “Experience the Upside of Aging”. It is a gathering place for mature adults to participate in recreational, social, educational, fitness and volunteer activities. The main sources of revenue are member fees and facility rentals. The main expenditures are salaries, benefits and payments to instructors or for other programming. Program revenues are $422,495 less than program expenditures. The indirectly funded amount is provided through property taxes, local government aid, franchise fees and interest. The Activity Center is part of the City’s General fund and does not have its own fund balance. Proposed 2023 2024 Percentage Budget Budget Incr (Decr) Revenues $ 105,300 $ 132,500 25.83% Expenditures $ 486,192 $ 554,995 14.15% Indirectly funded amount $ (380,892) $ (422,495)  Finance Department CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: October 10, 20223 Subject: Enterprise Fund Budgets and Utility Rate Review _____________________________________________________________________ PURPOSE No formal action is required at this meeting. Staff is requesting input on the proposed budgets for enterprise funds and utility rates. INFORMATION Pavilion Fund The Hopkins Pavilion is a multi-use, year-round arena and community facility. The arena is used for a multitude of activities including ice skating, broomball, soccer, lacrosse, inline skating, rugby, baseball, softball, concerts, company picnics and other community and private events. The main revenue sources are a property tax levy, facility rentals and leases. The main expenses are depreciation, salary, benefits and bond interest. The 2024 budget includes $100,000 for capital projects (replacement of a water heater, entrance doors and flooring). The budget is projecting a decrease in net position of $219,773, which includes $480,000 of depreciation. The funds cash flow is projected to increase. Pavilion Proposed 2023 2024 %age Budget Budget Incr (Decr) Revenues $ 819,000 $ 913,700 11.56% Expenditures $ 1,080,961 $ 1,133,473 4.86% Revenues over (under) Expenditures $ (261,961) $ (219,773)  Utility Funds The City has four separate utility funds to provide: water, sanitary sewer, storm sewer and refuse collection services. They are classified as enterprise or business-type funds. The main source of revenue for all funds is user charges. The main expenses are salaries, benefits, depreciation, bond costs, municipal wastewater charges and contracted services for recycling and organic pickup. Collectively, the funds are projected to end the year with a cash balance of $6.1 million and a net position (fund balance) of 26.7 million. The sanitary sewer and storm sewer have a positive cash flow projection in 2023. The water and refuse funds are projected to slightly decrease cash position in 2023, which can be absorbed within the funds. Water Proposed 2023 2024 %age Budget Budget Incr (Decr) Revenues $ 2,513,000 $ 2,892,400 15.10% Expenditures $ 2,627,587 $ 2,858,975 8.81% Revenues over (under) Expenditures $ (114,587) $ 33,425 Sanitary Sewer Proposed 2023 2024 %age Budget Budget Incr (Decr) Revenues $ 3,460,000 $ 3,635,000 5.06% Expenditures $ 3,397,964 $ 3,584,058 5.48% Revenues over (under) Expenditures $ 62,036 $ 50,942 Storm Sewer Proposed 2022 2023 %age Budget Budget Incr (Decr) Revenues $ 810,332 $ 810,332 0.00% Expenditures $ 793,522 $ 826,094 4.10% Revenues over (under) Expenditures $ 16,810 $ (15,762) Refuse Proposed 2023 2024 %age Budget Budget Incr (Decr) Revenues $ 1,271,200 $ 1,340,085 5.42% Expenditures $ 1,324,891 $ 1,477,104 11.49% Revenues over (under) Expenditures $ (53,691) $ (137,019)  Water & Sanitary Sewer Rates Proposed Water and Sanitary Sewer fund budgets have been prepared for 2024. The Water and Sanitary Sewer budgets being proposed include rate increases of approximately 16% and 5%, respectively. Rates are based on operational needs, capital needs and debt repayment. The City has a tiered rate structure for water consumption. 2023 2024 Percent Current Proposed Increase Flat Rates Per Meter Per Month Residential - 5/8" meter 3.34 3.87 15.87% Residential - 1" meter 3.34 3.87 15.87% Apt/Commercial - 1-1/2" to 2" meter 6.69 7.76 15.99% Apt/Commercial - 3" meter 10.04 11.65 16.04% Apt/Commercial - 4" meter 13.35 15.49 16.03% Apt/Commercial - 6" meter 20.04 23.25 16.02% Consumption Rates, Per 1,000 Gallons Residential and Multi-Family 0 - 3,000 gallons 3.42 3.97 16.08% 3,001 - 5,000 gallons 3.94 4.57 15.99% 5,001 and over 4.52 5.24 15.93% Commercial 0 - 10,000 gallons 3.27 3.79 15.90% 10,001 - 20,000 gallons 3.75 4.35 16.00% 20,001 and over 4.32 5.01 15.97% Irrigation - all usage 4.09 4.74 15.89% Production meter 3.45 4.00 15.94% Sanitary Sewer 7.58 7.96 5.00% The two following charts show the impact of the water and sewer rate increases for different user types. Impact on Low, Median and High Residential User Proposed Actual 2023 $ Increase % Increase 2024 Single Family Residential (Lower User) Water (1,500 Gallons) $ 8.47 $ 9.83 $ 1.36 16.00% Sewer (1,500 Gallons) $ 11.37 $ 11.94 $ 0.57 5.01% Total Monthly Bill $ 19.84 $ 21.77 $ 1.93 9.70% Single Family Residential (Median User) Water (4,000 Gallons) $ 17.54 $ 20.35 $ 2.81 16.02% Sewer (3,000 Gallons) $ 22.74 $ 23.88 $ 1.14 5.01% Total Monthly Bill $ 40.28 $ 44.23 $ 3.95 9.81% Single Family Residential (High User) Water (8,800 Gallons) $ 38.66 $ 44.83 $ 6.18 15.98% Sewer (4,800 Gallons) $ 36.38 $ 38.21 $ 1.82 5.01% Total Monthly Bill $ 75.04 $ 83.04 $ 8.00 10.66% Impact on Low and High Commercial User Proposed Actual 2023 $ Increase % Increase 2024 Commercial Property (Low User with a 1" Meter) Water (3,000 Gallons) $ 16.50 $ 19.13 $ 2.63 15.94% Sewer (3,000 Gallons) $ 22.74 $ 23.88 $ 1.14 5.01% Total Monthly Bill $ 39.24 $ 43.01 $ 3.77 9.61% Commercial Property (High User with a 2" Meter) Water (35,000 Gallons) $ 141.69 $ 164.31 $ 22.62 15.96% Sewer (35,000 Gallons) $ 265.30 $ 278.60 $ 13.30 5.01% Total Monthly Bill $ 406.99 $ 442.91 $ 35.92 8.83%  Storm Sewer Rates A proposed Storm Sewer fund budget has been prepared for 2024. Residential storm sewer fees are $5.00/month. There is no proposed rate increase. Refuse Rates A proposed Refuse fund budget has been prepared for 2024. Refuse increases of approximately 5% are being proposed for operational needs. The City has a five year contract with an outside service provider to provide recycling and organic recycling. Rates increases of approximately 2.5% are being proposed based the contract. Refuse, Recycling and Organic Recycling Rates 2023 2024 Percent Current Proposed Increase Refuse Collection 35 Gallon - Every Other Week 13.85 14.55 5.05% 35 Gallon 18.85 19.80 5.04% 65 Gallon 22.85 24.00 5.03% 95 Gallon 26.30 27.60 4.94% Recycling 5.50 5.64 2.55% Organic Recycling 5.75 5.89 2.43%  Annual Service Cost for Median Value Home Based on the preliminary tax levy passed, franchise fee ordinances and the utility rates proposed in this memo the annual service cost for a median value home is projected to increase by $109.16 or $8.85 per month. The median value home was $361,000 in 2023 and $369,300 in 2024. Annual Service Cost for Median Value Home Actual Proposed 2023 2024 $ Increase % Increase City Property Taxes (4.86% Levy Increase) $ 2,188.00 $ 2,187.00 $ (1.00) -0.05% Water - Consumption 7,500 gallons per month $3.20/$3.68/$4.22 Tiered Rates $ 393.36 $ 62.88 15.99% $3.42/$3.94/$4.52 Tiered Rates $ 456.24 Sewer - Consumption 5,000 gallons per month $7.08/ 1,000 gallons $ 454.80 $ 22.80 5.01% $7.58/ 1,000 gallons $ 477.60 Refuse Collection Garbage, 65 Gallon $ 274.20 $ 288.00 $ 13.80 5.03% Recycling $ 66.00 $ 67.68 $ 1.68 2.55% Organic Recycling $ 69.00 $ 70.68 $ 1.68 2.43% Storm Sewer $ 60.00 $ 60.00 $ - 0.00% Franchise Fees (based on average) $ 84.00 $ 91.32 $ 7.32 8.71% Total $ 3,589.36 $ 3,698.52 $ 109.16 3.04%