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08-10-2021 City Council Study Session Packet City of Grand Island Tuesday, August 10, 2021 Study Session Agenda City Council: Jason Conley Michelle Fitzke Bethany Guzinski Chuck Haase Maggie Mendoza Vaughn Minton Mitchell Nickerson Mike Paulick Justin Scott Mark Stelk Mayor: Roger G. Steele City Administrator: Jerry Janulewicz City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East 1st Street, Grand Island, NE 68801 Grand Island Study Session - 8/10/2021 Page 1 / 9 City of Grand Island Tuesday, August 10, 2021 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 Study Session - 8/10/2021 Page 2 / 9 City of Grand Island Tuesday, August 10, 2021 Study Session Item -1 Presentation concerning the City’s Bi-Lingual Employee Pay Policies and Use of Employees who Receive Bi-Lingual Pay Staff Contact: Aaron Schmid, Human Resources Director Grand Island Study Session - 8/10/2021 Page 3 / 9 Council Agenda Memo From:Aaron Schmid, Human Resources Director Meeting:August 10, 2021 Subject:Bilingual Pay and Translation Presenter(s):Aaron Schmid, Human Resources Director Background By email dated July 21, 2021, Council Member Haase requested a study session concerning the City’s translation stipend and he included questions regarding the program. The City’s Personnel Rules and Regulations and nearly all of City’s collective bargaining agreements contain the following bilingual pay policy: Sec. 5.09 BILINGUAL PAY. Employees who are proficient in an approved second language will be paid $1,500 per calendar year, payable in the second check in November. In order for an employee to collect bilingual pay, the employee must be actively employed in November. The Department Director will determine whether bilingual skills are needed based upon the interaction of the department with the public. If bilingual skills are needed, the Department Director will determine which languages are “approved” based upon the needs of the department as they relate to the demographics of Grand Island. A test will be given by the Human Resources Department to test the proficiency of the employees in each approved language before an employee is eligible for bilingual pay. The bilingual test will measure, among other things, an employee’s conversational ability. Bilingual pay will be prorated based on the employee’s average hours worked. An employee that is hired as an interpreter will not be eligible for bilingual pay. The City of Grand Island currently has 23 employees that receive the $1,500 (annual) stipend. The majority of these employees are just verbal translating. The study session will include information regarding the use of bilingual-pay employees by the various departments, department experience with remote translation service, and use of internet translation services. Grand Island Study Session - 8/10/2021 Page 4 / 9 City of Grand Island Tuesday, August 10, 2021 Study Session Item -2 2021/2022 Budget Discussion Staff Contact: Patrick Brown Grand Island Study Session - 8/10/2021 Page 5 / 9 Council Agenda Memo From: Patrick Brown, Finance Director Meeting: August 10, 2021 Subject: Budget Discussion Presenter(s): Patrick Brown, Finance Director Discussion General Fund appropriations less transfers for FY2022 increased $2,553,691 or 6.5% mostly due to a 27th period payroll. Usually there are 26 pay periods in the year but every 11 years there are 27. The extra pay period added $1.1 million to personnel services. Otherwise personnel services increases $909,426 or 2.9% over FY2021 budget. Personnel services includes a Grant Administrator and an interpreter/translator. Operating expense increases by 4.8% or $327,265. This increase is due to the cut backs made in the FY2021. Transfers out for operations increases $217,000 over FY2021 budget. During the current year we received American Rescue Plan funds of $4,546,940 which were deposited into the General Fund. In FY2022 budget, we are transferring those funds to the Wasterwater Enterprise Fund for the possible Airport Sewer Project. The FY2022 budget shows a loan to Solid Waste in order to do the Transfer Station upgrade. The loan would be for $4.5 million at 3% interest for 20 years. The saves financing costs to Solid Waste and increases the interest revenue for the General Fund. For FY2022 we are transferring $1,556,649 to restricted vacancy savings. This amount is for FY2021 and FY2022. Going forward we are planning on moving 50%-75% of personnel services savings to vacancy savings each year. The City’s Fiscal Policies will be updated to reflect this change and how those funds are to be used in the future. General Fund Revenues for FY2022 include a three percent increase projection for Property Taxes. Property valuations will not be known until August 20th. This is leaving the mill levy at 0.3445 as it is today. Sales tax projection is based off of current receipts and an average of the last two years plus two percent. FY2021 budget Sales Tax projection for the General Fund was $11,125,000 which had been the lowest projection in several years due to COVID-19. FY2022 Sales Tax projection for the General Fund is $13.4 million. Grand Island Study Session - 8/10/2021 Page 6 / 9 There will be a change in the budget calendar. LB148 was adopted in 2020 stating City’s will be required to have a public hearing regarding the budget, that is separate from a regular City Council meeting; therefore, the public hearing for the City of Grand Island’s budget could be rescheduled to another date to accommodate LB148. In addition, LB644 was also passed and will take effect in 2022 requiring a joint public hearing between the City, County, School and the Community College if one or all request an increase of 2% plus growth, or more in property tax requirement. Hall County will be required to send notification to all property owners informing them of the public hearing and how much taxes would go up. The cost of mailing the notification to property owners would be split between the entities requesting an increase in property taxes; if only one entity is requesting an increase, that entity would pay the entire cost of mailing. A link to the FY2022 Grand Island Proposed Budget was sent to you via email with your Council packet and below. https://www.grand-island.com/departments/finance/budgets/2022-budget Grand Island Study Session - 8/10/2021 Page 7 / 9 Revenue Growth % 2.00% 2.00%Transfers OUT % 3.00% 4.00%2021 Budget Forecast2022 Proposed Budget2023 2024 2025 2026 2027CommentsBeginning Cash 19,163,271$ 30,657,791$ 21,610,851$ 21,565,853$ 20,828,210$ 19,356,898$ 17,108,987$ General Fund Revenues 37,623,556$ 41,128,481$ 41,851,051$ 42,688,072$ 43,541,833$ 44,412,670$ 45,300,923$ Revenue Projection Adjustment 2,625,714$ Cares Act Receipts - 02/2021 3,523,669$ American Rescue Plan 4,546,940$ Loan Receivable - Solid Waste 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ Vacancy Savings Use 555,056$ -$ -$ -$ -$ -$ Transfers In 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ $35k from Farm Income (vet's cemetery), $65k from 2004 Sales Tax (Grand Generation)Total Revenue 48,419,879$ 41,783,537$ 42,251,051$ 43,088,072$ 43,941,833$ 44,812,670$ 45,700,923$ Personnel Services 30,976,782$ 32,986,067$ 33,305,510$ 34,637,730$ 36,023,239$ 37,464,169$ 38,962,736$ Assumes a 4.0% increase from 2023-2027End of Year Vacancy adjustment (1,864,429)$ -$ -$ -$ -$ -$ -$ Operating Expense 6,759,657$ 7,085,470$ 7,227,179$ 7,371,723$ 7,519,157$ 7,669,541$ 7,822,931$ Assumes a 2.0% increase from 2023-2027End of Year Operating adjustment (441,651)$ Transfers Out - Operations 1,495,000$ 1,712,000$ 1,763,360$ 1,816,261$ 1,870,749$ 1,926,871$ 1,984,677$ Eco-Devo $750k, Com-Dev $25k, Transit $272k, Cap Equip $600K, $65 Parking (lot maint)Total Expenses - Operations 36,925,359$ 41,783,537$ 42,296,049$ 43,825,714$ 45,413,145$ 47,060,581$ 48,770,344$ Transfers Out - ARP 4,546,940$ Loan to Solid Waste (Transfer Station) 4,500,000$ 3% Loan to the Transfer Station ProjectTotal Appropriations 36,925,359$ 50,830,477$ 42,296,049$ 43,825,714$ 45,413,145$ 47,060,581$ 48,770,344$ Ending Cash - Total 30,657,791$ 21,610,851$ 21,565,853$ 20,828,210$ 19,356,898$ 17,108,987$ 14,039,566$ Ending Cash - Unrestricted 20,110,851$ 19,565,853$ 18,328,210$ 16,356,898$ 13,608,987$ 10,039,566$ Ending Cash - Vacancy Savings 1,500,000$ 2,000,000$ 2,500,000$ 3,000,000$ 3,500,000$ 4,000,000$ Unrestricted Cash as % of Approp. 78.15% 48.13% 46.26% 41.82% 36.02%28.92% 20.59%Operating Exp. Growth %Personnel Exp. Growth %General Fund Projection 5 YR - FTE WorksheetGrand IslandStudy Session - 8/10/2021Page 8 / 9 Month% Chg from last 5 yrs Weighted Average2020‐2021 2019‐2020 2018‐2019 2017‐2018 2016‐2017 2015‐2016October (August Sales)‐6.1%$1,057,781 $1,188,794$1,075,924 $1,119,883$1,038,538 $1,024,841November (September Sales)4.2% $1,174,042 $1,171,705 $1,117,435 $1,072,596 $1,085,533 $1,093,208December (October Sales)14.7% $1,149,438 $1,081,071 $951,082 $953,390 $935,263 $991,574January (November Sales)‐0.8%$1,078,953 $1,139,676$1,063,966 $1,050,638$1,019,233 $942,240February (December Sales) 4.6% $1,355,388 $1,382,855 $1,198,305 $1,274,948 $1,277,850 $1,318,613March (January Sales) 13.9% $1,037,466 $952,840$874,532 $919,814 $833,057 $868,222April (February Sales) 10.0% $1,001,105 $1,043,773 $717,073 $920,792$931,049 $899,326May (March Sales) 22.9% $1,321,216 $1,044,475 $1,127,306 $1,050,343 $1,086,982 $1,095,096June (April Sales) 38.9% $1,304,190 $841,215 $1,050,553 $922,793 $1,025,074 $986,570July (May Sales) 21.0% $1,295,614 $1,050,249 $1,132,561 $1,085,910 $939,020 $1,047,591August (June Sales) $1,137,414 $1,148,371 $612,804$1,100,370 $1,117,141September (July Sales) $1,146,471 $1,084,297 $1,096,061 $1,048,272 $1,065,520Total 11.7% $11,775,193 $13,180,537 $12,541,406 $12,079,972 $12,320,242 $12,449,941Budget $11,125,000 12,500,000$        $12,931,309 $12,677,755 $12,677,755 $12,368,541% of Budget 105.8% 87.2% 79.7% 81.8% 80.2% 83.0%2004 Sales Tax $2,355,039 $2,636,107 $2,508,671 $2,416,574 $2,464,640 $2,490,5862018 Sales Tax$4,710,077 $5,272,215$1,766,313 $0 $0 $0Total Sales Tax $18,840,308 $21,088,859$16,816,390 $14,496,546 $14,784,882 $14,940,527General Fund Sales Tax RevenueGrand IslandStudy Session - 8/10/2021Page 9 / 9