City Council Worksession

South St. Paul MAYOR/COUNCIL WORKSESSION SSP City Hall 125 3rd Avenue North Monday, August 27, 2018 7:30 p.m. AGENDA: 1. Budget Discussion: Preliminary levies 2. Discussion: Economic and Community Development Department Revised Organizational Chart and Job Descriptions 3. Update for Maywood/Deerwood Drive Neighborhood – No Attachment A COUNCIL WORKSESSION REPORT DATE: August 27, 2018 1 DEPARTMENT: Finance ADMINISTRATOR: JRH AGENDA ITEM: Proposed 2019 Preliminary Levies for City, HRA and EDA DESIRED MEETING OUTCOMES:  Review and discuss proposed 2019 City, HRA and EDA preliminary property tax levies  Provide direction to Staff regarding inclusion in draft 2019 budget calculations and/or specify additional information requested for consideration and decisions on these budget proposals. Attached are a number of items relating to this discussion: 1. Proposed Budget Summary Worksheets 2. Revised HRA and EDA Levied Budgets OVERVIEW: At the August 13th work session discussion occurred regarding the preliminary tax levies. The consensus was to go with a proposed levy increase of $877,616 which represents an increase of 7.68%. The City Administrator and Finance Director believe that the final levy set in December will be lower than this amount, however there are several unknown factors at this point in time. The preliminary HRA levy increase of $25,111 represents a 9.6% increase from 2018. This levy is based on the statutory maximum formula. This levy will eliminate the ReDiscover South St. Paul fund deficit, will reduce the Redevelopment fund deficit and will support the Economic Development and Housing Programs. The preliminary EDA levy increase of $24,609 or 9.6%, is based on the statutory maximum formula. This levy supports the Economic Activities of the City. The investment in this program has long term benefits to the City and its’ tax payers. The City Administrator and Finance Director will be presenting the preliminary 2019 budgets and levies at the September 4th Council meeting. We recommend adoption of the preliminary levy at that time, but if needed, the final adoption of the preliminary levy can occur on the September 17th Council meeting. The City must certify all preliminary levies to Dakota County by September 28th. SOURCE OF FUNDS: CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET SPENDING AND TAXES ALL TAX LEVY SUPPORTED FUNDS Revised Revised Proposed 18 TO 19 Budget Budget Budget CHANGE 2017 2018 2019 $ % TAXES General Fund $8,148,002 $8,984,652 $9,871,971 $887,319 Library 744,391 761,863 772,082 10,219 Doug Woog Arena 269,884 337,111 330,954 (6,157) Capital Program - - - Debt Service 1,303,731 1,350,476 1,336,711 (13,765) TOTAL $10,466,008 $11,434,102 $12,311,718 $877,616 7.68% SPENDING General Fund $14,200,385 $15,199,458 $16,257,047 $1,057,589 6.96% Library 756,091 774,262 779,482 5,220 0.67% Doug Woog Arena 1,000,532 1,073,211 1,001,493 (71,718) -6.68% Capital Program 900,000 936,250 943,209 6,959 0.74% Debt Service 1,303,731 1,350,476 1,336,711 (13,765) -1.02% TOTAL $18,160,739 $19,333,657 $20,317,942 $984,285 5.09% Increased Taxes for: Operations 9.44% Debt Service -1.76% 7.68% BUDGET - 1 8-27-18 Work session CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET 2019 BUDGET SUMMARY ALL TAX LEVY SUPPORTED FUNDS 2019 Revised Doug Woog Capital General Library Arena Programs Debt Total Budget 2018 Budget 18 TO 19 Change REVENUES: Property Tax Levy: Property Taxes 9,871,971 772,082 330,954 1,336,711 12,311,718 11,434,102 877,616 7.68% Total Property Taxes 9,871,971 772,082 330,954 - 1,336,711 12,311,718 11,434,102 877,616 7.68% Tax Rate off TIF parcels 245,000 245,000 245,000 - - Local Government Aid (LGA) 1,586,850 943,209 2,530,059 2,523,100 6,959 0.28% Fees and Fines 1,782,385 4,000 1,786,385 1,737,560 48,825 2.81% Intergovernmental 751,093 751,093 730,480 20,613 2.82% Charges for Services 1,745,248 1,000 719,600 2,465,848 2,282,919 182,929 8.01% Miscellaneous 114,500 2,400 116,900 108,900 8,000 7.35% Transfers In 160,000 160,000 261,597 (101,597) -38.84% TOTAL REVENUES 16,257,047 779,482 1,050,554 943,209 1,336,711 20,367,003 19,323,658 1,043,345 5.40% APPROPRIATIONS General Government 2,235,728 2,235,728 2,229,467 6,261 0.28% Public Safety 8,374,570 8,374,570 8,019,672 354,898 4.43% Public Works 3,624,364 3,624,364 3,438,325 186,039 5.41% Community Development 789,603 789,603 765,767 23,836 3.11% Recreation and Library 712,782 779,482 931,493 2,423,757 2,390,110 33,647 1.41% Contingency 500,000 500,000 5,774 494,226 100.00% Debt Service (external) 1,336,711 1,336,711 1,509,192 (172,481) -11.43% Capital Improvements 70,000 943,209 1,013,209 955,350 57,859 6.06% Transfers Out 20,000 20,000 20,000 - - TOTAL APPROPRIATIONS 16,257,047 779,482 1,001,493 943,209 1,336,711 20,317,942 19,333,657 984,285 5.09% BUDGET - 2 8-27-18 Work session CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET GENERAL FUND SUMMARY OF REVENUE Revised 2016 2017 2018 2019 2017 vs 2018 Description ACTUAL ACTUAL ORIGINAL REVISED Request Final $ % PROPERTY TAXES Total Property Taxes 7,630,773 8,210,994 9,001,092 8,984,652 9,871,971 - 887,319 9.88% TOTAL PROPERTY TAXES 7,630,773 8,210,994 9,001,092 8,984,652 9,871,971 - 887,319 9.88% OTHER TAXES Tax Rate generated off TIF parcels 460,294 480,153 245,000 245,000 245,000 - 0.00% FEES AND FINES - Franchise Fees 952,548 959,279 1,210,000 1,210,000 1,210,000 - 0.00% Fines and Forfeits 113,668 124,587 118,300 118,300 134,000 15,700 13.27% License and Permits - Business 119,837 130,804 118,160 118,275 119,285 1,010 0.85% License and Permits - Non-business 301,016 444,351 287,100 287,100 319,100 32,000 11.15% TOTAL FEES AND FINES 1,487,069 1,659,021 1,733,560 1,733,675 1,782,385 - 48,710 2.81% INTERGOVERNMENTAL REVENUE State Grants and Aid (includes LGA) 2,025,611 2,024,532 2,105,721 2,105,721 2,127,719 21,998 1.04% County Grants and Payments 59,181 74,121 59,775 59,775 65,438 5,663 9.47% Federal Grants and Aids - - - - 10,642 10,642 100.00% Local Grants and Payments 114,206 122,264 121,834 121,834 134,144 12,310 10.10% Other - - - - - - 0.00% TOTAL INTERGOVERNMENTAL 2,198,998 2,220,917 2,287,330 2,287,330 2,337,943 - 50,613 2.21% BUDGET - 3 8-27-18 Work sessionPM 8/22/20182:39 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET GENERAL FUND SUMMARY OF REVENUE Revised 2016 2017 2018 2019 2017 vs 2018 Description ACTUAL ACTUAL ORIGINAL REVISED Request Final $ % CHARGES FOR SERVICES Administration Charge (includes TIF) 420,639 496,961 501,326 501,326 640,289 138,963 27.72% Internal Service Charge 20,657 20,657 20,657 20,657 20,657 - 0.00% PILOT (Payment in Lieu of tax) 40,620 43,402 37,000 37,000 40,000 3,000 8.11% Administration-Construction 42,266 16,549 25,000 25,000 25,000 - 0.00% Engineering Project Fees 258,956 279,517 200,000 200,000 250,000 50,000 25.00% Parks and Recreation 185,852 178,058 190,200 190,200 184,800 (5,400) -2.84% Rents 77,260 77,260 78,365 78,365 77,980 (385) -0.49% Planning & Code Enforcement 54,416 119,312 57,000 57,000 68,000 11,000 19.30% Public Safety 4,165 3,132 3,800 3,800 3,000 (800) -21.05% Public Works - Streets 4,259 2,328 2,000 2,000 2,000 - 0.00% Antenna and Other Charges 244,848 257,091 260,000 260,000 260,000 - 0.00% Barge Terminal & Mooring Fees 155,052 158,153 161,316 161,316 164,542 3,226 2.00% Other 23,106 37,463 9,155 9,155 8,980 (175) -1.91% TOTAL CHARGES FOR SERVICE 1,532,096 1,689,883 1,545,819 1,545,819 1,745,248 - 199,429 12.90% MISCELLANEOUS Interest on Investments 52,759 51,062 75,000 75,000 75,000 - 0.00% Other 77,104 34,098 26,500 26,500 39,500 13,000 49.06% TOTAL MISCELLANEOUS 129,863 85,160 101,500 101,500 114,500 - 13,000 12.81% BUDGET - 4 8-27-18 Work sessionPM 8/22/20182:39 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET GENERAL FUND SUMMARY OF REVENUE Revised 2016 2017 2018 2019 2017 vs 2018 Description ACTUAL ACTUAL ORIGINAL REVISED Request Final $ % TRANSFERS IN Transfers in Storm Water Fee 40,000 40,000 40,000 40,000 40,000 - 0.00% Transfers in Water/Sewer 100,000 100,000 100,000 100,000 100,000 - 0.00% Transfers In Street Light Utility 20,000 20,000 20,000 20,000 20,000 - 0.00% Transfer from HRA/EDA/Library 973 178,720 131,597 131,597 - (131,597) 100.00% TOTAL TRANSFERS IN 160,973 338,720 291,597 291,597 160,000 - (131,597) -45.13% TOTAL REVENUES 13,600,066 14,684,848 15,205,898 15,189,573 16,257,047 - 1,067,474 7.02% Surplus/(Deficit) 343,760 675,789 - - - - *Use of fund balance to offset contingency DETAIL OF TAX LEVY Current and Delinquent 5,458,137 5,674,569 6,413,977 6,397,537 7,284,856 - (6,397,537) -100.00% Fiscal Disparities 2,172,636 2,536,425 2,587,115 2,587,115 2,587,115 - (2,587,115) -100.00% General Fund Levy 7,630,773 8,210,994 9,001,092 8,984,652 9,871,971 - (8,984,652) -100.00% BUDGET - 5 8-27-18 Work sessionPM 8/22/20182:39 CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET GENERAL FUND SUMMARY OF EXPENDITURES Revised 2016 2017 2018 2019 2018 vs 2019 Description ACTUAL ACTUAL Original Revised Request Proposed $ % GENERAL GOVERNMENT Mayor and Council 106,281 161,127 155,698 155,698 162,504 6,806 4.37% City Administration 383,457 373,754 492,730 496,554 439,461 (57,093) -11.50% Human Resources 116,963 111,548 118,384 118,242 118,185 (57) -0.05% City Attorney 226,002 245,122 232,000 232,000 232,000 - 0.00% City Clerk 134,473 135,919 158,979 145,346 135,847 (9,499) -6.54% Finance 447,799 456,259 476,559 478,894 484,399 5,505 1.15% Information Technology 244,399 369,909 440,479 444,981 505,242 60,261 13.54% Community Affairs 110,441 113,611 110,341 111,218 110,804 (414) -0.37% Recycling 40,281 37,113 46,534 46,534 47,286 752 1.62% TOTAL GENERAL GOVERNMENT 1,810,096 2,004,362 2,231,704 2,229,467 2,235,728 - 6,261 0.28% PUBLIC SAFETY Police Protection 5,007,497 5,223,170 5,623,861 5,667,265 5,930,089 262,824 4.64% Fire Department 2,104,709 2,273,577 2,352,407 2,352,407 2,444,481 92,074 3.91% TOTAL PUBLIC SAFETY 7,112,206 7,496,747 7,976,268 8,019,672 8,374,570 - 354,898 4.43% PUBLIC WORKS Engineering 500,290 488,708 479,901 483,462 513,713 30,251 6.26% Streets, Alleys and Boulevards 1,514,935 1,532,925 1,641,099 1,662,381 1,779,832 117,451 7.07% Buildings 362,254 224,032 289,601 299,788 279,734 (20,054) -6.69% Parks Facilities and Maintenance 638,799 882,997 996,098 992,694 1,051,085 58,391 5.88% TOTAL PUBLIC WORKS 3,016,278 3,128,662 3,406,699 3,438,325 3,624,364 - 186,039 5.41% BUDGET - 6 8-27-18 Work session CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET GENERAL FUND SUMMARY OF EXPENDITURES Revised 2016 2017 2018 2019 2018 vs 2019 Description ACTUAL ACTUAL Original Revised Request Proposed $ % COMMUNITY DEVELOPMENT Planning & Zoning 199,185 199,196 225,547 228,569 275,925 47,356 20.72% Licensing & Code Enforcement 430,005 469,644 542,703 527,198 513,678 (13,520) -2.56% TOTAL COMMUNITY DEVELOPMENT 629,190 668,840 768,250 755,767 789,603 - 33,836 4.48% PARKS AND RECREATION Parks Administration 336,464 334,101 397,324 406,849 400,915 (5,934) -1.46% Splash Pool 76,569 68,884 76,556 76,672 74,664 (2,008) -2.62% Northview Pool 72,494 71,478 75,356 75,472 75,064 (408) -0.54% Recreation Programs 183,009 215,985 160,349 161,460 162,139 679 0.42% TOTAL PARKS AND RECREATION 668,536 690,448 709,585 720,453 712,782 - (7,671) -1.06% CONTINGENCY - - 93,392 5,889 500,000 494,111 TRANSFERS OUT Transfer to Capital Project Funds - - - - - - - Street Light 20,000 20,000 20,000 20,000 20,000 - 0.00% Library - - - - - - - TOTAL TRANSFERS OUT 20,000 20,000 20,000 20,000 20,000 - - 0.00% TOTAL EXPENDITURES 13,256,306 14,009,059 15,205,898 15,189,573 16,257,047 - 1,067,474 7.03% BUDGET - 7 8-27-18 Work session CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Housing Programs 20260 Activities and Responsibilities: The Housing program is accountable for: ● Providing professional and technical support to contracted service providers at the John Carroll and Nan McKay Public Highrise properties. ● Providing professional and technical support to homeowners that have utilized legacy CDBG-funded programs that remain within the purview of the City, and technical support to Dakota County CDA for programs that have been recently turned over to the CDA. Loan monitoring and administration. ● Administration of portfolio of vacant residential properties located throughout the City and held for future resale, including managing property maintenance issues. ● Administration and oversight of HUD and other grant programs that benefit and serve residential housing within the City. ● Identifying, researching, applying for, and administering grant programs that support a range of Community Development programs and initiatives. ● Support for and collaboration with the Economic Development and Planning programs. Budget Highlights and Changes: Notable Expenditure Changes in 2019 ● The ReDiscover South St. Paul program/fund continues to show a negative balance. The 2019 budget includes an operating transfer of $41,000 to payoff the deficit. The Development Fund had a deficit balance of $79,200, 2019 has a transfer to reduce this deficit. EDA fund will receive $25,671, to balance 2019 budget. ● The above defecit reductions/transfers account for approximately 91% of the proposed $24,574 overall increase in budget in 2019 over 2018. ● Staffing changes and the transfer of day-to-day management of the Public Highrise program result in a reduced number of FTEs in the Program for 2019 vs. 2018, however personnel services expenditures show an approximately $47,000 increase as these positions will broaden the focus to identify and implement housing initiatives throughout the community in addition to the administrative oversight of the Public Housing Program. Budget - 1 8-27-18 Worksession CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Housing Programs 20260 Notable Expenditure Changes in 2019 (continued) ● We recommend a new position for 2019; the Housing and Grants Program Administrator. It is estimated that this and other levy-supported positions will be partially supported by HUD program funding, as the City will retain ownership of the Highrises and will manage the contracted services and HUD administration of this program. ● The City continues to own several properties in single-family residential contexts which require maintenance. While many of these properties are within the Concord TIF, several of them are not, and previously used sources such as the Rediscover Fund and Development Fund are in a negative state. For 2019, we'll utilize the HRA levy to support these "holding" costs while we attempt to market and sell those that we can. Revenues ● Maximum HRA levy is $286,174. Staffing 2016 2017 2018 2019 Division Director 0.500 1.000 1.000 0.100 Program Manager 1.000 1.000 1.000 1.000 Line staff 3.500 3.500 3.500 - Clerical/support 0.500 1.000 1.000 0.800 Total Staffing 5.500 6.500 6.500 1.900 2019 staffing = Community Dev Director (10%), Hsg & Grant Program Mgr (100%), Office Specialist(80%) 50% reimbursed by HUD program & 50% reimbursed by HRA levy is the current estimated recovery Budget - 2 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF REVENUES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20260 - HOUSING GENERAL REVENUES AND EXPENDITURES REVENUES TAXES 4110 - CURRENT AD VALOREM TAX (192,578) (183,145) (261,063) 0 (261,063) (286,174) 4120 - DELINQUENT AD VALOREM TAX (3,366) (3,870) 0 4125 - PENALTIES & INT ON AD VAL TAX 102 (33) 0 4130 - MOBILE HOME TAX (53) (36) 0 4140 - FISCAL DISPARITIES (52,786) (64,675) 0 TAXES (248,681) (251,759) (261,063) 0 (261,063) (286,174) CHARGE FOR SERVICE COMMUNITY DEVELOPMENT 4493 - OTHER CHARGE FOR SERVICE - COM (348,797) 0 0 COMMUNITY DEVELOPMENT (348,797) 0 0 ADMINISTRATIVE CHARGES 4409 - ADMINISTRATIVE CHARGE (202,469) 0 (538,769) 0 (538,769) ADMINISTRATIVE CHARGES (202,469) 0 (538,769) 0 (538,769) CHARGES FOR SERVICES (551,266) 0 (538,769) 0 (538,769) MISCELLANEOUS 4672 - OTHER (0) 0 0 4675 - INSURANCE DIVIDEND (191) 0 4677 - MISC REVENUE (517) 0 (8,865) MISCELLANEOUS (517) (191) (8,865) OTHER FINANCING SOURCES 4920 - INTERFUND OPERATING TRANSFER (7,156) 0 (133) OTHER FINANCING SOURCES (7,156) 0 (133) REVENUES (807,621) (251,950) (799,832) (8,997) (799,832) (286,174) Budget - 3 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20260 - HOUSING GENERAL EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 315,987 29,835 433,604 11,898 31,183 61,793 6102 - FULL-TIME EMPLOYEES-OVERTIME 24,020 0 0 6104 - TEMPORARY EMPLOYEES-REG 21,355 0 0 6108 - ACCUMULATED VACATION/COMP LEAV 1,489 0 3,862 0 627 805 6120 - EMPLOYER CONTR FOR RETIREMENT 54,138 6,447 65,988 1,732 4,762 9,362 6130 - EMPLOYER PAID INSURANCE 44,424 3,139 63,129 1,275 3,122 12,761 6140 - UNEMPLOYMENT COMP INS. 3,631 5,599 0 6150 - WORKERS COMPENSATION 7,559 172 9,218 121 9,218 9,679 6170 - EMPLOYER CONTR TO HCSP 6,321 435 12,236 100 893 1,852 TOTAL PERSONNEL SERVICES 478,926 45,626 588,037 15,126 49,805 96,252 SUPPLIES 6201 - OFFICE SUPPLIES 8,801 3,625 2,030 984 2,030 2,088 6210 - OPERATING SUPPLIES 0 288 95 6240 - MINOR EQUIPMENT AND FURNITURE 2,000 2,000 TOTAL SUPPLIES 8,801 3,912 4,030 1,079 4,030 2,088 OTHER SERVICES AND CHARGES 6302 - PROFESSIONAL SERVICES 39,033 38,741 70,000 23,134 70,000 50,000 6331 - CONFERENCES, TRAINING, TRAVEL 22 354 99 6361 - INSURANCE 5,814 625 3,618 2,306 3,618 4,098 6371 - REPAIRS & MAINT CONTRACTUAL 0 170 0 6374 - ADMINISTRATION SUPPORT FEE 0 65,000 65,000 27,085 65,000 30,113 6375 - OTHER CONTRACTED SERVICES 2,955 669 0 12,000 6378 - COPIER MAINTENANCE AGREEMENT 1,875 2,400 792 2,400 2,000 6381 - OTHER RENTALS 1,497 1,799 1,110 821 1,110 1,600 6385 - UTILITY SERVICE 537 0 0 6388 - TECHNOLOGY EQUIP CHARGE 500 1,901 795 1,901 1,788 6390 - POSTAGE AND TELEPHONE 5,792 3,619 1,100 1,607 1,100 1,200 TOTAL OTHER SERVICES AND CHARGES 55,651 113,351 145,129 56,640 145,129 102,799 Budget - 4 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget MISCELLANEOUS 6412 - CREDIT CARD/ACH/BANK FEE 4 0 0 6430 - MISCELLANEOUS 658 707 0 6465 - INTEREST/FINANCE CHARGE 88 0 0 TOTAL MISCELLANEOUS 750 707 0 DEBT SERVICE 6612 - INTEREST EXPENSE 1,416 0 0 TOTAL DEBT SERVICE 1,416 0 0 TRANSFERS 6720 - OPERATING TRANSFERS 40,281 315,109 62,636 0 62,636 85,035 TOTAL TRANSFERS OUT 40,281 315,109 62,636 0 62,636 85,035 TOTAL EXPENDITURES 585,826 478,705 799,832 72,845 261,600 286,174 CHANGE 2018 REVISED TO 2019 PROPOSED 24,574 PERCENT CHANGE 2018 REVISED TO 2019 PROPOSED 9.39% Budget - 5 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET HOUSING GENERAL DETAIL OF EXPENDITURES 2018 2019 2019 CODE ITEM DESCRIPTION AND ITEMS Revised Requested Final NO. EXPLANATION OF REQUEST Budget Budget Budget EXPENDITURES MATERIALS & SUPPLIES 6201 OFFICE SUPPLIES water cooler $188 supplies $1500, shred it 400 2,030 2,088 6240 MINOR EQUIPMENT AND FURNITURE 2,000 SERVICES AND OTHER CHARGES 6302 PROFESSIONAL SERVICES audit fees est $25,000, financial services -$25,000 70,000 50,000 6361 INSURANCE 3,618 4,098 6374 ADMINISTRATION SUPPORT FEE 65,000 30,113 6375 OTHER CONTRACTED SERVICES Property Maint-rediscover & redevelopment 12,000 properties 6378 COPIER MAINTENANCE AGREEMENT $5,000 total split 40-40-20 w/ Planning & ED 2,400 2,000 6381 OTHER RENTALS rug rental $650, postage meter rent $1750 (Split with 1,110 1,600 Planning) 6388 TECHNOLOGY EQUIP CHARGE amortization of technology equipment 1,901 1,788 6390 POSTAGE AND TELEPHONE mobile phone service/postage 1,100 1,200 TRANSFERS 6720 OPERATING TRANSFERS Rediscover (41,000) & Development (18,364) EDA 62,636 85,035 (25,671) Budget - 6 8-27-18 Worksession CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic Development General 20280 Activities and Responsibilities: The Economic Development program is accountable for: ● Development and implementation of plans and strategies for advancing economic and community development. ● Assisting existing and prospective businesses and developers. ● Assisting existing businesses with expansion and reconstruction projects. Providing guidance to bring new development projects to fruition. ● Providing expertise regarding available public and private business financing resources, including state assistance, possible local initiatives and other funding sources. ● Administration of Tax Increment Financing (TIF) plans and Business and Development Loan Programs. ● Providing staff services to the EDA and EDAB. Budget Highlights and Changes: Significant Revisions - 2019 Original vs. 2019 Revisions ● None Notable Expenditure Changes in 2019 ● Staff is proposing divesting in the Open to Business program in the 2019 Budget Year. These services, historically provided by outside organizations to support the City's Economic Development efforts, simply have failed to demonstrate a return on investment. ● Staff is proposing investment in additional technological resources in 2019 to provide a greater ability to measure and illustrate the City's economic development opportunities and challenges. Budget - 7 8-27-18 Worksession CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic Development General 20280 Notable Expenditure Changes in 2019 (continued) ● In concert with proposed changes to the HRA approach and staffing, Staff is proposing restructuring as a Department of Economic and Community Development. This restructuring would bring additional focus to the City's approach and is intended to maximize the efficiency of a lean staff to proactively identify opportunities to increase the commercial property tax base and advance SSP as a development-ready, business-friendly community. Notable Capital Project or Asset Acquisitions ● Subscription to ESRI ArcGIS technogy and the Business Analyst software program, which will significantly improve our capacity to provide service to prospective businesses, developers, and the EDA/Council. Staffing 2016 2017 2018 2019 Division Director 1.00 1.00 1.00 0.90 Clerical/support 0.50 0.50 0.50 0.70 Total Current Staffing 1.50 1.50 1.50 1.60 2019 staffing = Cmty Dev Director (90%), Assistant to Dep. Director (50%) & Office Specialist (20%) Budget - 8 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET ECON DEV GENERAL SUMMARY OF REVENUES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20280 - ECON DEV GENERAL REVENUES AND EXPENDITURES REVENUES TAXES 4110 - CURRENT AD VALOREM TAX (158,933) (206,831) (255,842) 0 (255,842) (280,451) 4120 - DELINQUENT AD VALOREM TAX (2,553) 0 4125 - PENALTIES & INT ON AD VAL TAX (14) 0 4130 - MOBILE HOME TAX (28) (41) 0 TAXES (158,961) (209,439) (255,842) 0 (255,842) (280,451) CHARGE FOR SERVICE COMMUNITY DEVELOPMENT 4496 - TIF APPLICATION FEE (8,500) 0 COMMUNITY DEVELOPMENT (8,500) 0 CHARGES FOR SERVICES 0 (8,500) 0 MISCELLANEOUS 4675 - INSURANCE DIVIDEND (566) 0 MISCELLANEOUS (566) 0 OTHER FINANCING SOURCES 4920 - INTERFUND OPERATING TRANSFER (141,754) (36,597) 0 (36,597) (25,671) OTHER FINANCING SOURCES (141,754) (36,597) 0 (36,597) (25,671) REVENUES (158,961) (360,259) (292,439) 0 (292,439) (306,122) levy increase is $24,609 is 9.6% increase Budget - 9 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET ECON DEV GENERAL SUMMARY OF EXPENDITURES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20280 - ECON DEV GENERAL EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 73,372 129,520 135,177 51,969 136,528 147,262 6102 - FULL-TIME EMPLOYEES-OVERTIME 0 0 0 6108 - ACCUMULATED VACATION/COMP LEAV 480 2,635 2,805 0 4,789 4,612 6112 - SERVICE RECOGNITION 2,500 6120 - EMPLOYER CONTR FOR RETIREMENT 10,721 18,921 20,843 7,819 21,050 22,310 6130 - EMPLOYER PAID INSURANCE 20,043 20,303 15,809 9,203 17,194 22,765 6150 - WORKERS COMPENSATION 1,982 679 876 528 876 920 6170 - EMPLOYER CONTR TO HCSP 3,350 2,866 2,844 375 4,105 4,212 TOTAL PERSONNEL SERVICES 109,948 174,924 178,354 72,394 184,542 202,081 SUPPLIES 6201 - OFFICE SUPPLIES 343 666 1,000 136 1,000 1,000 6210 - OPERATING SUPPLIES 27 0 20 6240 - MINOR EQUIPMENT AND FURNITURE 256 0 2,500 2,571 2,500 2,000 TOTAL SUPPLIES 626 666 3,500 2,727 3,500 3,000 OTHER SERVICES AND CHARGES 6302 - PROFESSIONAL SERVICES 58,211 40,428 30,000 16,452 30,000 30,608 6331 - CONFERENCES, TRAINING, TRAVEL 481 2,992 3,200 2,003 3,200 2,920 6341 - ADVERTISING 103 1,770 2,000 0 2,000 2,000 6361 - INSURANCE 4,945 5,657 914 5,657 1,622 6374 - ADMINISTRATION SUPPORT FEE 16,000 16,000 23,805 6375 - OTHER CONTRACTED SERVICES 0 0 11,000 11,013 11,000 5,500 6378 - COPIER MAINTENANCE AGREEMENT 1,325 1,200 604 1,200 1,200 6381 - OTHER RENTALS 11 0 0 6388 - TECHNOLOGY EQUIP CHARGE 187 579 245 579 521 6390 - POSTAGE AND TELEPHONE 318 985 1,500 417 1,500 1,500 TOTAL OTHER SERVICES AND CHARGES 59,124 52,631 71,136 31,649 71,136 69,676 Budget - 10 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET ECON DEV GENERAL SUMMARY OF EXPENDITURES 2018 May 2018 2019 2019 2016 2017 Description Original 2018 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget MISCELLANEOUS 6430 - MISCELLANEOUS 5,000 176 0 6471 - DUES & SUBSCRIPTIONS 672 700 1,055 700 1,365 TOTAL MISCELLANEOUS 5,000 848 700 1,055 700 1,365 CAPITAL OUTLAY 6570 - OFFICE EQUIP & FURNISHINGS 7,250 3,805 7,250 TOTAL CAPITAL OUTLAY 0 7,250 3,805 7,250 DEBT SERVICE 6612 - INTEREST EXPENSE 667 0 0 TOTAL DEBT SERVICE 667 0 0 TRANSFERS 6720 - OPERATING TRANSFERS 30,000 30,000 0 30,000 30,000 TOTAL TRANSFERS OUT 30,000 30,000 0 30,000 30,000 TOTAL EXPENDITURES 175,365 259,069 290,940 111,630 297,128 306,122 CHANGE 2018 REVISED TO 2019 PROPOSED 8,994 PERCENT CHANGE 2018 REVISED TO 2019 PROPOSED 3.03% Budget - 11 8-27-18 Worksession CITY OF SOUTH ST. PAUL, MN ANNUAL BUDGET ECON DEV GENERAL DETAIL OF EXPENDITURES 2018 2019 2019 CODE ITEM DESCRIPTION AND ITEMS Revised Requested Final NO. EXPLANATION OF REQUEST Budget Budget Budget EXPENDITURES MATERIALS & SUPPLIES 6201 OFFICE SUPPLIES General office (envelopes, business cards, toner, 1,000 1,000 copy paper), water cooler (1/3 of cost = $125) 6240 MINOR EQUIPMENT AND FURNITURE ESRI Software, Digital Dictation Recorder 2,500 2,000 SERVICES AND OTHER CHARGES 6302 PROFESSIONAL SERVICES Legal Services, Financial Advising for TIF, 30,000 30,608 Development Loans 6331 CONFERENCES, TRAINING, TRAVEL 1x National Conference ($1,800), 1x State 3,200 2,920 Conference ($500), Chamber, ULIMN & MREJ Events ($300) Edie Training - $320. 6341 ADVERTISING Publication of Legal Notices - Lillie News 2,000 2,000 6361 INSURANCE 5,657 1,622 6374 ADMINISTRATION SUPPORT FEE 16,000 23,805 6375 OTHER CONTRACTED SERVICES Progress Plus 11,000 5,500 6378 COPIER MAINTENANCE AGREEMENT 1,200 1,200 6388 TECHNOLOGY EQUIP CHARGE amortization of technology equipment 579 521 6390 POSTAGE AND TELEPHONE Mailings, Cell Phone 1,500 1,500 MISCELLANEOUS 6471 DUES & SUBSCRIPTIONS APA/AICP ($550) IEDC ($450), ULIMN ($190), River 700 1,365 Heights Chamber ($175) CAPITAL OUTLAY 6570 OFFICE EQUIP & FURNISHINGS 7,250 TRANSFERS 6720 OPERATING TRANSFERS City Admin & Planning Costs 30,000 30,000 Budget - 12 8-27-18 Worksession