City Council

MINUTE RECORD PAPILLION CITY COUNCIL BUDGET HEARING MINUTES TUESDAY, AUGUST 18, 2020 ( a) 8: 00 P. M. The City Council of the City of Papillion met in open and public session at Papillion City Hall, on August 18, 2020, at 8: 00 PM. City Clerk Nicole Brown called the roll. Present were Councilmembers Tom Mumgaard, Jason Gaines, Jim Glover, Lu Ann Kluch, Bob Stubbe, Steve Engberg, and Mayor David P. Black. Councilmembers Steve Sunde and Gene Jaworski were absent. Also present were City Administrator Amber Powers, Deputy City Administrator Phil Green, City Attorney Alan Thelen, Planning Director Mark Stursma, Fire Chief Bill Bowes, Public Works Director/ City Engineer Jeff Thompson, Deputy City Engineer Alex Evans, Police Chief Scott Lyons, Parks & Facilities Director Tony Gowan, Finance Director Nancy Hypse, Recreation Director Lori Hansen, Human Resources Director Carrie Svendsen, Plans Examiner Brad Sojka, Golf General Manager Rob Spomer, Golf Course Superintendent Ryan Shea and Library Director Matt Kovar. Mayor Black led those present in the Pledge of Allegiance. Affidavit of Publication: Notice of the meeting was given in the Papillion Times, the designated method of giving notice. A copy is available in the office of the City Clerk. Incorporated herein by reference as if fully set out herein is the audio and visual recording of the council meeting. Public announcement that a current copy of the open meeting act is posted in the City Council Chambers. ORDINANCES SECOND READING AND PUBLIC HEARING: ORD. 1890 — An ordinance to adopt the FY2020/ 2021 Budget — Nancy Hypse — 597- 2020. Mayor Black briefly explained the new legislation from the State requiring the budget hearing to be held at a separate meeting. He then provided a presentation of the FY2020/ 2021 Budget, which is attached hereto. Mayor Black opened the public hearing and called for proponents and opponents. No one came forward and the public hearing was closed. ADJOURNMENT: Motion to adjourn by Councilmember Glover, second by Councilmember Gaines. Upon roll call vote, Mumgaard, Gaines, Glover, Kluch, Stubbe, and Engberg all voted yes. Voting no: none. Absent: Sunde and Jaworski. Motion passed. Meeting adjourned at 8: 28 PM. CITY OF PAPILLION DAV P. BLACK, MAYOR ATTEST: pF pqp/` 1, tit Ado G( T '•.? S'C-44_) NICOLE BROWN, CITY CLERK i i SEAL August 18, 2020 /+ f4i ,• r9:18 ' • qBRA  A'. CH Of P APILUON d "' avid P [ Back, jNIAor tiIlir to. „ ii- O 122 East Third Street Papillion, Nebraska 68046 Phone: 402- 827- 1111 Fax: 402- 339- 0670 July 31, 2020 Papillion City Council Members: I am pleased to provide the proposed budget for fiscal year 2020/ 2021. As we all know this is an unusual time with the country navigating through a global pandemic. We also know that there is a high likelihood that a vaccine may not be ready until this next year, so prudent planning would expect some level of Covid- 19 impact throughout 2021. With that, this proposed budget balances General Fund expenditures to a conservative projection of revenues. Despite the current situation, this budget is able to maintain our current full- time staffing levels, maintains insurance benefits for employees, and honors our longer- term agreements with the individual employee bargaining units. Additionally, it does not defer critical maintenance, does not jeopardize our Street or Capital Improvement Plan, and it does not cut the level of services. The proposal does not call for the City to issue any new bonded debt. Our wise planning the last five years called for reserves to be in place with the idea of sometime in the future we could face a recession, or economic downturn, and we wanted to be prepared for that— no one expected that to be a global pandemic. Thank you for your support and collective wisdom that has prepared us well for this upcoming year! I want to now share highlights of the proposal. I believe you will find it in line with the budget meetings we had this month. REVENUE Sales Tax again is our largest source of revenue at 38. 7% of total revenue- yet is the most volatile and directly impacted by the pandemic. We are projecting$ 11. 7 million which represents neither an increase nor decrease in Sales Tax. The decrease that other jurisdictions are factoring in their budgets is offset in from the large GENERAL FUND REVENUE 1 our case by the online sales tax we now realize mitigates the Fees and sewertn- t.ieu did last year. That annexation we annexation i Permits of€ axes ` ' The ire sa1 I negative affect we would have otherwise realized. f t.. 7Ta= txibt iai% a 8 ons 10, 7 Property Tax Levy will remain at last years level of t approximately$ 0. 45 per$ 100 of valuation— this continues to 1 be the lowest City levy of all communities in both Sarpy and Douglas County. Preliminary assessed valuation indicates a 7% increase for a total assessed valuation of approximately 2. 63 billion and generating $ 4. 61 million in general fund street_ r ~` revenue— a reflection of our growth through new building and Allocation l ,." development. Most other revenues we are projecting at the ss% Chxua r \` current level, so they already factor in a Covid impact. 1-; s. nrrooertyTax t5.= GENERAL FUND Combined departmental personnel costs represent the single largest expense in the General Fund at approximately 72. 2% of total expenditures. The proposed budget accounts for a 3% increase in wages. Health insurance premiums are projected at 8%. Workman' s Compensation increases 3%. Dental, life and long-term disability see no increase. With our sustained growth and heavier use of park system we do see one additional maintenance person added to the Parks Department. This budget continues to invest in supervisor and leadership development. The general theme for most department level budgets is to GENERAL FUND EXPENDITURES not implement any major initiatives or programs that are dependent on General Fund revenues until we fully i 1 RAW, 2.S. tik Fire, 36. S% understand the Covid impact. If during the new budget year, we find we were too conservative we will evaluate the need for a budget amendment and present that to you at the appropriate time with current data. The proposed budget requests$ 175, 000 of cash reserves to Library, 3. 9% streets be used for " Covid Relief". The intent is to help offset . eL, aw+we, z 9s' 11. 1 yain.: 3s current year impacts for departments who depended on Recreation, IT' 1. 8% revenues that not realized because of the Directive Sewer In-\- 1. 9% were Admin63% Health Measures, yet still had fixed expenses. rates Q$ Public Safety continues to include the two largest General Fund budgets. As indicated above, budgets are generally in- line with the current year. The Police Department remains fully funded, continues the strong relationship with the school district, and retains our professional CALEA certification. The Fire Department, through the partnership with the City of La Vista and the Papillion Rural Fire District, will see the implementation of a long- term vehicle replacement program with each paying their pro- rata share of the full budget. With Fire, our two partners fund 58.4% of the budget and fees cover an additional 8. 29%. The last two years we made a serious investment in Streets. In 2018, we saw the first complete mapping of all city streets and the development of a long- term Pavement Management Plan to keep all at, or above, an acceptable standard. Because we now have a data- driven plan, 2019 then saw a four-fold increase to$ 2. 2 million in the street repair budget. This proposal calls for the$ 2. 2 million to be retained and to again be managed based on the Plan. Additionally, we retained over$ 200, 000 in general pothole and street repairs. These are both fully funded without financing. The Capital Improvement Plan ( CIP) retains the current $ 1. 5 million in additional funding. Included in this are a Police K9 vehicle, Public Works vehicles, adaptive traffic signals at 72' & Applewood, and an additional contribution to City Hall renovation. All CIP projects are on the current Plan and scheduled to be paid without financing. If you go back 20 years to when the current Police Station was built you can see that the City has been on a 3- 5 year cycle of improving a facility. This discipline has allowed us to keep up with the growth and to not defer needs. The last of the City buildings to be addressed is City Hall. The last two budget years we have set aside funds through the CIP for the remodel of the first and second floors. The remodel will upgrade the old HVAC systems, provide for a more efficient use of space, increase the public' s ability to interact with staff, and allow for continued growth. This budget allocates an additional$ 1 million from cash reserves to allow the project to be completed this next budget year. The percentage of the total levy being dedicated to the Bond Fund remains the same at approximately 42%. Outstanding debt for the Bond Fund is$ 102. 855 million, which includes$ 64. 435 million for the voter approved Papillion Landing. Total annual debt service, excluding Papillion Landing, is$ 5. 1 million. The cash reserve of the bond fund is approximately$ 7. 1 million. Our investment grade rating was reiterated by Moody' s earlier this year. We will continue to actively look for opportunities to either call( retire) debt early or to refinance debt if rates are advantageous. This budget does include the availability to use$ 1 million in cash at the time of refinancing or to call bonds early. OTHER The Water and Sewer Funds have no major changes as those proprietary funds are in line with the expectations established in the prior rate study. Outstanding debt of the water fund is$ 11. 31 million with annual debt service at about$ 1 million. Nearly 1 million is set aside in a debt reserve fund and over$ 5. 2 million in unrestricted reserve. The voter- approved 1/ 2 cent sales tax is by law dedicated for parks and recreation and cannot be used for general operations. The primary use of the 1/ 2 cent is for the bond payments on Papillion Landing. In preparation for a future economic downturn, we previously funded S0% of the upcoming year' s debt service requirement as debt service reserve. The proposed budget fully funds our bond obligations and the reserve remains fully funded. The proposed budget does request $ 200,000 for park improvements that include upgrades to a neighborhood park in both Ward 2 and 3, as well as Halleck Park. The balance of the fund will be reserved for future years and will be managed under a new Parks Master Plan which will be updated this next year through a public process. As with prior years, the Community Betterment Fund continues to allocate funds for incremental improvements to Veterans Park. Unfortunately, this year saw the cancelation of most Papillion 150 celebrations, including Papillion Days. It is clear from the community that next year we will have a special celebration to kickoff the next 150 years, so$ 25, 000 will be allocated to that. Funds for Community Betterment are generated through keno operations and are restricted to community projects. CLOSING I want to personally thank City Administrator Amber Powers, Deputy City Administrator Phil Green, Finance Director Nancy Hypse and all Department Heads for their leadership and expertise that has allowed us to navigate the current Covid crisis while maintaining both our financial integrity as well as our quality of service. The worst time in history to request a review and rating from Moody' s would be at the start of a global pandemic when the municipal bond market was under stress— well we did and not surprisingly, Moody' s reiterated our previous investment grade rating. We have a great team! I also want to personally thank you for your support as we continue to manage a rapidly growing community without an increase in the property tax levy, strengthening Papillion' s financial condition, lowering the use of debt, and continuing providing high levels of service delivery through effective management and growth planning. Our median home price is 180, 700 and the $. 045 levy is $ 810 or $ 67. 50 per month, which is less than what a typical household would pay for their internet service or their cell phone plan. The Cash Reserve Policy you approved in 2010 has played a critical key role in our ability to maintain this value while navigating the Covid- 19 crisis. I want to thank our incredible employees that serve our residents. They are faithful, professional, and caring. They respect the work of the Council and support the established goals. We know there are other jurisdictions that are facing tough decisions related to staffing and benefits during this economic downturn, but I am thankful to be able to present a budget that maintains our staff and our commitments to them. I hope you see that the goals from the 2020 Council Retreat continue to be reflected in the budget priorities: ( 1) Maintain a Strong Financial Position,( 2) Maintain the Small Town Feel and Sense of Community,( 3) Manage Growth and Development, 4) Maintain and Improve Downtown Papillion, and( 5) Manage Plans. Thank you for your leadership that continues to allow Papillion to thrive as a place that" feels like home" If you have specific questions on the budget, please feel free to reach out to Ms. Powers, Mr. Green or myself. Sincerely, David P. Black Mayor