07-14-2020 City Council Regular Meeting Packet
City of Grand Island
Tuesday, July 14, 2020
Council Session/Budget Work Session
Agenda
City Council:
Jason Conley
Chuck Haase
Julie Hehnke
Jeremy Jones
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Clay Schutz
Justin Scott
Mark Stelk
Mayor:
Roger G. Steele
City Administrator:
Jerry Janulewicz
City Clerk:
RaNae Edwards
8:00 PM
Council Chambers - City Hall
100 East 1st Street, Grand Island, NE 68801
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 1 / 10
City of Grand Island Tuesday, July 14, 2020
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 2 / 10
City of Grand Island
Tuesday, July 14, 2020
Council Session/Budget Work Session
Item -1
Continued FY 2020/2021 Budget Discussions
Staff Contact: Patrick Brown
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 3 / 10
Council Budget Work Session Memo
From: Patrick Brown, Finance Director
Meeting: July 14, 2020
Subject: General Fund Budget Discussion
Presenter(s): Patrick Brown, Finance Director
Background
Due to the pandemic and the uncertainty of the City’s revenue sources for the upcoming budget year, certain decisions need to be made as to the funding of General Fund operations and the use of Cash Reserves. The City’s use of Cash Reserves provides the
City the means to handle economic uncertainties, local disasters, and any other unanticipated financial hardships. Discussion
The City’s Fiscal Year (FY) 2021 Budget will be a challenge. It’s a challenge because of the abrupt change and uncertainty in revenue streams and how those changes will affect City operations going forward. For the models of the following pages we used these assumptions:
• 15% reduction in Sales Tax Revenue
• 2% Property Tax Increase (discussion point)
• 3% revenue growth for year 2022 and 2% growth for years 2023-2026
• 3.31% growth in Personnel Services for years 2022-2026 (see historical data)
• 0% cost of living adjustment for non-union members in the General Fund for FY2021
• Transfers out of $750k for Economic Development (LB840), Community Development
$25k, Transit $220k, and Capital Equipment of $500k
Model 1: In this model we would use $1,695,883 in cash reserves for the FY2021 budget. The only transfers into the General Fund would be $35,000 for the Vet’s Cemetery maintenance
and $65,000 for Grand Generation Center. The $1,695,883 does not include capturing the incremental increase in property tax (adjusting the city’s mill levy down). If the City keeps the same mill levy, cash reserves would be reduced by $1,461,190.
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 4 / 10
Model 2: In this model we would use $1,445,883 in cash reserves for the FY2021 budget. The
transfers into the General Fund consist of $35,000 for the Vet’s Cemetery maintenance, $65,000 for Grand Generation Center, and $250,000 KENO funds. The $1,445,883 does not include capturing the incremental increase in property tax (adjusting the city’s mill levy down). If the City keeps the same mill levy, cash reserves would be reduced by
$1,211,190.
Model 3: In this model we would use $695,883 in cash reserves for the FY2021 budget. The transfers into the General Fund consist of $35,000 for the Vet’s Cemetery maintenance,
$65,000 for Grand Generation Center, $250,000 KENO funds, and $750,000 from Food
& Beverage Occupation Tax. This model assumes there would not be a payment to Grow Grand Island from the Food & Beverage Fund. Parks projects were also funded out of the Food & Beverage fund in the past but in this model Park’s Projects would be funded by 2004 Sales Tax. The $695,883 does not include capturing the incremental increase in
property tax (adjusting the city’s mill levy down). If the City keeps the same mill levy,
cash reserves would be reduced by $461,190. Model 4: In this model we would use $461,190 in cash reserves for the FY2021 budget. The
transfers into the General Fund consist of $35,000 for the Vet’s Cemetery maintenance,
$65,000 for Grand Generation Center, $250,000 KENO funds, and $750,000 from Food & Beverage Occupation Tax. Recommendation
Finance and Administration is looking for recommendations from City Council on the funding of General Fund operations and the use of Cash Reserves.
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 5 / 10
Model 12019 2020 2021 2022 2023 2024 2025 2026CommentsBeginning Cash 13,305,411 13,648,685 11,952,802 10,449,000 8,514,6266,127,318 3,263,798Revenue 39,208,970 37,380,179 38,501,584 39,271,616 40,057,048 40,858,189 41,675,353 3% growth in 2022, 2% for 2023-2026End of Year Adjustment -$1,251,943 - - - - - - -3.2%If City reduces mill levy to keep property tax receipts the same.(234,693) Transfers In 35,000 100,000 100,000 100,000 100,000 100,000 100,000 $35k from Farm Income (vet's cemetery), $65k from 2004 Sales Tax (Grand Generation)Total Revenue 37,992,027 37,245,486 38,601,584 39,371,616 40,157,048 40,958,189 41,775,353 Personnel Services 29,865,965 30,799,558 31,819,023 32,872,233 33,960,304 35,084,390 36,245,683 Assumes a 3.31% increase from 2022-2036; non-union members 0% cost of living adjustment for 2021End of Year Vacancy adjustment (1,016,065) - - - - - - Personnel Svcs % of Total Approptiations 76.6% 79.1%Operating Expense 7,249,062 6,646,811 6,746,513 6,847,711 6,950,427 7,054,683 7,160,503 Assumes a 1.5% increase from 2021-2031End of Year Operating adjustment (550,209) Operating Exp. % of Total Approptiations 17.8% 17.1%Transfers Out 2,100,000 1,495,000 1,539,850 1,586,046 1,633,627 1,682,636 1,733,115 Eco-Devo $750k, Com-Dev $25k, Transit $220k, Cap Equip $500K - 3% GrowthEnd of Year Transfer Savings - - - - - - - Transfers % of Total Approptiations 5.6% 3.8%- - - - - - - Total Appropriations 37,648,753 38,941,369 40,105,387 41,305,989 42,544,357 43,821,709 45,139,301 Ending Cash 13,305,411 13,648,685 11,952,802 10,449,000 8,514,626 6,127,318 3,263,798(100,150)Cash as % of Appropriations 36.25% 30.69% 26.05% 20.61% 14.40% 7.45% -0.22%Use of Cash Reserves 343,274(1,695,883)Grand IslandCouncil Session/Budget Work Session - 7/14/2020Page 6 / 10
Model 2Revenue Growth % 2.00% 1.50%Transfers OUT % 3.00% 3.31%2019 2020 2021 2022 2023 2024 2025 2026CommentsBeginning Cash 13,305,411 13,648,685 12,202,802 10,699,000 8,764,6266,377,318 3,513,798Revenue 39,208,970 37,380,179 38,501,584 39,271,616 40,057,048 40,858,189 41,675,353 3% growth in 2022, 2% growth 2023-2026End of Year Adjustment -$1,251,943 - - - - - - -3.2%If City reduces mill levy to keep property tax receipts the same.(234,693) Transfers In 35,000 350,000 100,000 100,000 100,000 100,000 100,000 $35k from Farm Income (vet's cemetery), $65k from 2004 Sales Tax (Grand Generation), KENO $250kTotal Revenue 37,992,027 37,495,486 38,601,584 39,371,616 40,157,048 40,958,189 41,775,353 Personnel Services 29,865,965 30,799,558 31,819,023 32,872,233 33,960,304 35,084,390 36,245,683 Assumes a 3.31% increase from 2022-2036; non-union members 0% cost of living adjustment for 2021End of Year Vacancy adjustment (1,016,065) - - - - - - Personnel Svcs % of Total Approptiations 76.6% 79.1%Operating Expense 7,249,062 6,646,811 6,746,513 6,847,711 6,950,427 7,054,683 7,160,503 Assumes a 1.5% increase from 2021-2031End of Year Operating adjustment (550,209) Operating Exp. % of Total Approptiations 17.8% 17.1%Transfers Out 2,100,000 1,495,000 1,539,850 1,586,046 1,633,627 1,682,636 1,733,115 Eco-Devo $750k, Com-Dev $25k, Transit $220k, Cap Equip $500K - 3% GrowthEnd of Year Transfer Savings - - - - - - - Transfers % of Total Approptiations 5.6% 3.8%- - - - - - - Total Appropriations 37,648,753 38,941,369 40,105,387 41,305,989 42,544,357 43,821,709 45,139,301 Ending Cash 13,305,411 13,648,685 12,202,802 10,699,000 8,764,626 6,377,318 3,513,798 149,850Cash as % of Appropriations 36.25% 31.34% 26.68% 21.22% 14.99% 8.02% 0.33%Use of Cash Reserves 343,274(1,445,883)Operating Exp. Growth %Personnel Exp. Growth %General Fund Projection 5 YR - FTE WorksheetGrand IslandCouncil Session/Budget Work Session - 7/14/2020Page 7 / 10
Model 3Revenue Growth % 2.00% 1.50%Transfers OUT % 3.00% 3.31%2019 2020 2021 2022 2023 2024 2025 2026CommentsBeginning Cash 13,305,411 13,648,685 12,952,802 11,449,000 9,514,6267,127,318 4,263,798Revenue 39,208,970 37,380,179 38,501,584 39,271,616 40,057,048 40,858,189 41,675,353 3% growth in 2022, 2% growth 2023-2026End of Year Adjustment -$1,251,943 - - - - - - -3.2%If City reduces mill levy to keep property tax receipts the same.(234,693) Transfers In 35,000 1,100,000 100,000 100,000 100,000 100,000 100,000 $35k from Farm Income (vet's cemetery), $65k from 2004 Sales Tax (Grand Generation), KENO $250k, Food & Beverage $750k (Economic Development Agreement). Stop KENO & FB Transfer starting in 2022Total Revenue 37,992,027 38,245,486 38,601,584 39,371,616 40,157,048 40,958,189 41,775,353 Personnel Services 29,865,965 30,799,558 31,819,023 32,872,233 33,960,304 35,084,390 36,245,683 Assumes a 3.31% increase from 2022-2036; non-union members 0% cost of living adjustment for 2021End of Year Vacancy adjustment (1,016,065) - - - - - - Personnel Svcs % of Total Approptiations 76.6% 79.1%Operating Expense 7,249,062 6,646,811 6,746,513 6,847,711 6,950,427 7,054,683 7,160,503 Assumes a 1.5% increase from 2021-2031End of Year Operating adjustment (550,209) Operating Exp. % of Total Approptiations 17.8% 17.1%Transfers Out 2,100,000 1,495,000 1,539,850 1,586,046 1,633,627 1,682,636 1,733,115 Eco-Devo $750k, Com-Dev $25k, Transit $220k, Cap Equip $500K - 3% GrowthEnd of Year Transfer Savings - - - - - - - Transfers % of Total Approptiations 5.6% 3.8%- - - - - - - Total Appropriations 37,648,753 38,941,369 40,105,387 41,305,989 42,544,357 43,821,709 45,139,301 Ending Cash 13,305,411 13,648,685 12,952,802 11,449,000 9,514,626 7,127,318 4,263,798 899,850Cash as % of Appropriations 36.25% 33.26% 28.55% 23.03% 16.75% 9.73% 1.99%Use of Cash Reserves 343,274(695,883)Operating Exp. Growth %Personnel Exp. Growth %General Fund Projection 5 YR - FTE WorksheetGrand IslandCouncil Session/Budget Work Session - 7/14/2020Page 8 / 10
Model 4Revenue Growth % 2.00% 1.50%Transfers OUT % 3.00% 3.31%2019 2020 2021 2022 2023 2024 2025 2026CommentsBeginning Cash 13,305,411 13,648,685 13,187,495 11,683,693 9,749,3197,362,011 4,498,491Revenue 39,208,970 37,380,179 38,501,584 39,271,616 40,057,048 40,858,189 41,675,353 3% growth in 2022, 2% growth 2023-2026End of Year Adjustment -$1,251,943 - - - - - - -3.2%Transfers In 35,000 1,100,000 100,000 100,000 100,000 100,000 100,000 $35k from Farm Income (vet's cemetery), $65k from 2004 Sales Tax (Grand Generation), KENO $250k, Food & Beverage $750k (Economic Development Agreement). Stop KENO & FB Transfer starting in 2022Total Revenue 37,992,027 38,480,179 38,601,584 39,371,616 40,157,048 40,958,189 41,775,353 Personnel Services 29,865,965 30,799,558 31,819,023 32,872,233 33,960,304 35,084,390 36,245,683 Assumes a 3.31% increase from 2022-2036; non-union members 0% cost of living adjustment for 2021End of Year Vacancy adjustment (1,016,065) - - - - - - Personnel Svcs % of Total Approptiations 76.6% 79.1%Operating Expense 7,249,062 6,646,811 6,746,513 6,847,711 6,950,427 7,054,683 7,160,503 Assumes a 1.5% increase from 2021-2031End of Year Operating adjustment (550,209) Operating Exp. % of Total Approptiations 17.8% 17.1%Transfers Out 2,100,000 1,495,000 1,539,850 1,586,046 1,633,627 1,682,636 1,733,115 Eco-Devo $750k, Com-Dev $25k, Transit $220k, Cap Equip $500K - 3% GrowthEnd of Year Transfer Savings - - - - - - - Transfers % of Total Approptiations 5.6% 3.8%- - - - - - - Total Appropriations 37,648,753 38,941,369 40,105,387 41,305,989 42,544,357 43,821,709 45,139,301 Ending Cash 13,305,411 13,648,685 13,187,495 11,683,693 9,749,319 7,362,011 4,498,491 1,134,543Cash as % of Appropriations 36.25% 33.87% 29.13% 23.60% 17.30% 10.27%2.51%Use of Cash Reserves 343,274(461,190)Operating Exp. Growth %Personnel Exp. Growth %General Fund Projection 5 YR - FTE WorksheetGrand IslandCouncil Session/Budget Work Session - 7/14/2020Page 9 / 10
Personnel Costs % change over prior year
2011 22,574,946
2012 22,628,819 0.24%
2013 23,423,719 3.51%
2014 26,225,124 11.96% 5.41%average
2015 27,373,839 4.38%
2016 29,275,793 6.95%
2017 27,423,210 ‐6.33% Critical Decisions made
2018 26,366,468 ‐3.85% Critical Decisions made
2019 27,616,755 4.74%
2020 Budget 29,865,958 8.14% 5.42%average
2021 Prop Budget 30,869,119 3.36%
Overall Average 3.31%
Personnel Cost % Change
Grand Island Council Session/Budget Work Session - 7/14/2020 Page 10 / 10