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08-30-2022 City Council Special Meeting Packet City of Grand Island Tuesday, August 30, 2022 Special Meeting 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 Special Meeting - 8/30/2022 Page 1 / 14 City of Grand Island Tuesday, August 30, 2022 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 Special Meeting - 8/30/2022 Page 2 / 14 City of Grand Island Tuesday, August 30, 2022 Special Meeting Item E-1 Public Hearing on FY 2022-2023 Annual Single City Budget and the Annual Appropriations Bill Council action will take place at the Regular Meeting of August 30, 2022 under Ordinances item F-3. Staff Contact: Patrick Brown Grand Island Special Meeting - 8/30/2022 Page 3 / 14 Council Agenda Memo From:Patrick Brown, Finance Director Meeting:August 30, 2022 Subject:Public Hearing on FY2022-2023 Annual Single City Budget and Annual Appropriations Bill Presenter(s):Patrick Brown, Finance Director Background The purpose of the meeting is to comply with the requirements of Neb.Rev.Stat. Sec. 13- 506 as amended by Laws 2020 LB 148, which requires: Each governing body shall each year or biennial period conduct a public hearing on its proposed budget statement. Such hearing shall be held separately from any regularly scheduled meeting of the governing body and shall not be limited by time. Notice of place and time of such hearing, together with a summary of the proposed budget statement, shall be published at least four calendar days prior to the date set for hearing in a newspaper of general circulation within the governing body's jurisdiction. . . . At such hearing, the governing body shall make at least three copies of the proposed budget statement available to the public and shall make a presentation outlining key provisions of the proposed budget statement, including, but not limited to, a comparison with the prior year's budget. Any member of the public desiring to speak on the proposed budget statement shall be allowed to address the governing body at the hearing and shall be given a reasonable amount of time to do so. After such hearing, the proposed budget statement shall be adopted, or amended and adopted as amended, and a written record shall be kept of such hearing. The amount to be received from personal and real property taxation shall be certified to the levying board after the proposed budget statement is adopted or is amended and adopted as amended. There will be no council action taken during this meeting. Discussion The “Notice of Budget Hearing and Budget Summary” was published in the Grand Island Independent on August 26, 2022. It is appropriate at this time to solicit public comment. The action item for this public hearing will be under Ordinances at the City Council meeting on August 30, 2022 following the Special Meeting of City Council. The following is a comparison of the fiscal year 2023 proposed budget to the FY2022 adopted budget: Grand Island Special Meeting - 8/30/2022 Page 4 / 14 The FY2023 budget appropriation is 8.8% or $20,435,226 higher than the FY2022 adopted budget. The difference is mainly due to increase costs from inflation, delayed capital purchases from FY2022 (supply chain issues), and appropriation of American Rescue Plan funds of $4,546,940 for potential project(s). All Funds Revenue projections for FY2023 increased 8.3% or $16,200,412 over FY2022 budget. Overall the City’s property tax valuation increased 5%. The City is requesting to increase its tax ask for Property Tax by 4% of which the City keeps 3% and the County gets an administration fee of 1%. Community Redevelopment Authority is requesting the same tax ask as FY2022 ($745,146) and an additional 1% fee for Hall County’s administration fee. The City’s mill levy will decrease for the fourth straight year from 0.323600 to 0.319454. Total Sales Tax revenue is forecasted at $24,085,936 for FY2023. It is a 10.4% or $2,275,300 increase over FY2022 budget. The increase was due to the sustained increase in sales tax collections in the last year and quarter. All other revenue sources in the General Fund account for $2,766,770 increase over FY2022 budget. A large portion of the increase is due to the rebalancing of revenues and costs between the General Fund and Enterprise Funds. Transfers decreased in the FY2023 by $7,057,176 due to American Rescue Plan funds not being transferred (they have been including in budget authority to spend) and not transferring funds to Solid Waste for financing the improvements at the Transfer Station. Costs have increased for the Transfer Station project therefore it will be forwarded to Council for approval along with proposed funding. Additional FTE’s and Reclassifications: The General Fund will be adding 13.58 full-time equivalents (FTE’s) and they are as follows: o Fire/Ambulance Department will increase its staff by three FTE’s (Fire/Paramedics for ambulance service) for a cost of $307,755 o Adding 0.20 FTE to Administrative Assistant Part Time in the Building Department for a cost of $10,662 o Emergency Management is adding two FTE Public Safety Dispatchers for a cost of $158,128 which is split with Hall County at 50%. Also there is a reclassification of three Public Safety Dispatchers to Senior Public Safety Dispatchers for a cost of $27,237 which would be split with Hall County. o Parks and Recreation is adding a Parks Maintenance Worker at a cost of $71,189. o Planning Department is adding 0.38 FTE for a Planner. This is part of a rebalance of expenses between the General Fund and Utilities. The cost to the General Fund is $36,559 which is split 50% with Hall County. o Police Department is adding two Public Safety Apprentices FTE’s for a cost of $158,110. Also adding one FTE (4 part time staff members) Airport Police Officer(s) for a cost of $71,178. o Reclassification of an Engineer in Public Works to an Engineer 1 or 2 or Senior for a cost of $10,076. Grand Island Special Meeting - 8/30/2022 Page 5 / 14 o Library is adding three FTE’s including a Librarian, 1.25 FTE Part time Library Assistant I’s, 0.25 FTE Part time Library Page, and 0.50 FTE Part time Summer Workers for a total cost of $154,832.85. o Finance Department is adding one FTE Risk Manager placeholder. Finance, Administration, and Human Resource will conduct a study as to the need of a Risk Manager. The budget includes three months of budget authority but the hiring of the Risk Manager will be presented to City Council before moving forward. The cost to the General Fund will be $41,723. The Streets Division is reclassing two Senior Maintenance Workers to Senior Equipment Operators for a cost of $1,746 Solid Waste is adding an Office Manager for a cost of $90,469 and reclassing the Accounting Technician position to a Solid Waste Division Clerk for a cost of $13,639. The Utility Department decreased their FTE’s by 0.38 (Planner costs moved to General Fund) saving $36,559. Water Department is adding one FTE Water Maintenance Worker for a cost of $87,330. Waste Water Operations is reclassing an Accounting Technician to Administrative Assistant, Engineer to Engineer I or II or Senior, Engineer Technician to Engineer Technician I or II or Senior, and adding one FTE FOG (Fats, Oils, and Grease) Program Manager. Total cost is 104,000. General Fund Personnel Services for FY2023 increased 8% due to step increases, cost of living adjustments, and four new union contracts. Operating expenses increased 9% (excluding the $4.5m American Rescue Plan appropriation) for the General Fund over FY2022 budget. Investment in Capital Improvement Projects for proposed budget FY2023 is $49,594,533 plus an investment in Capital Equipment of $3,494,941. Below is a list of Capital Improvement Projects. Some of the projects not listed below that are in the budget include Festoon Lighting for downtown ($180K), restrooms at the Amur/Kaufman Plaza ($104k), land purchase behind the new Emergency Management Center ($139k), demolition of buildings at the Heartland Public Shoot Park ($100k), and various other Parks projects. Grand Island Special Meeting - 8/30/2022 Page 6 / 14 Public Works Projects Project 2023 2024 2025 2026 2027 2028 Annual Handicap Ramp 165,000$ 169,950$ 175,000$ 180,000$ 185,700$ 191,400$ Webb Rd Paving Assessments 80,500$ 80,500$ 80,500$ -$ -$ -$ Five Points Intersection Improvements 586,900$ -$ -$ -$ -$ -$ Hwy 30 Realignment -$ -$ 892,566$ -$ -$ -$ Broadwell /UPRR Grade Separation 100,000$ 720,000$ 420,000$ 933,000$ 467,000$ 18,720,000$ North Rd; Old Potash Hwy to 13th St 500,000$ -$ -$ -$ -$ -$ North Rd; Old Potash Hwy to Hwy 30 2,650,000$ -$ -$ -$ -$ -$ Custer Ave; Old Potash Hwy to Forrest St 1,700,000$ -$ -$ -$ -$ -$ Eddy St Underpass Rehab 300,000$ -$ -$ -$ -$ -$ Locust St; 2nd St to Fonner Park R 450,000$ 5,000,000$ 5,000,000$ -$ -$ -$ Veterans Legacy (contingent on other funding)150,000$ 1,200,000$ -$ -$ -$ -$ Claude Rd; State St/Diers Ave to Claude Rd 2,400,000$ -$ -$ -$ -$ -$ Bond Payment 1,708,850$ 1,763,150$ 1,759,350$ 1,758,450$ 1,760,250$ 1,762,450$ NW Flood Control Project 20,000$ -$ -$ -$ -$ -$ N Moores Creek 80 Wetland Detention 210,000$ 1,400,000$ 350,000$ -$ -$ -$ Sidewalk Cost Share Program 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ PVIP Drainage District No. 2020-1 250,000$ -$ -$ -$ -$ -$ Citywide Drainage 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Street/Fleet Facility Study 150,000$ -$ -$ -$ -$ -$ Brookline/Henry Drainage Improvements 50,000$ -$ -$ -$ -$ -$ 11,746,250$ 10,608,600$ 8,952,416$ 3,146,450$ 2,687,950$ 20,948,850$ Solid Waste Projects/Equipment Grand Island Special Meeting - 8/30/2022 Page 7 / 14 Waste Water Projects Electric Utility Capital Improvements Grand Island Special Meeting - 8/30/2022 Page 8 / 14 Water Utility Capital Improvements Below is the Notice of Budget Hearing and Budget Summary. 2020-2021 Actual Disbursements & Transfers 243,203,566.00$ 2021-2022 Actual/Estimated Disbursements & Transfers 236,320,540.00$ 2022-2023 Proposed Budget of Disbursements & Transfers 273,245,385.00$ 2022-2023 Necessary Cash Reserve 121,540,801.00$ 2022-2023 Total Resources Available 394,786,186.00$ Total 2022-2023 Personal & Real Property Tax Requirement 12,968,678.76$ Unused Budget Authority Created For Next Year 21,487,410.78$ Breakdown of Property Tax: Personal and Real Property Tax Required for Non-Bond Purposes 12,968,678.76$ Personal and Real Property Tax Required for Bonds -$ 2021 2022 Change Operating Budget 260,185,039.00 273,245,385.00 5% Property Tax Request 12,487,780.00$ 12,968,678.76$ 4% Valuation 3,626,392,825 3,821,381,633 5% Tax Rate 0.358226 0.339371 -5% Tax Rate if Prior Tax Request was at Current Valuation 0.326787 NOTICE OF BUDGET HEARING AND BUDGET SUMMARY Hall County, Nebraska City of Grand Island NOTICE OF SPECIAL HEARING TO SET FINAL TAX REQUEST IN PUBLIC NOTICE is hereby given, in compliance with the provisions of State Statute Sections 13-501 to 13-513, that the governing body will meet on the 30 day of August 2022, at 7:00 o'clock P.M., at 100 E 1st St for the purpose of hearing support, opposition, criticism, suggestions or observations of taxpayers relating to the following proposed budget. The budget detail is available at the office of the Clerk during regular business hours. PUBLIC NOTICE is hereby given, in compliance with the provisions of State Statute Section 77-1632, that the governing body will meet on the 30 day of August 2022, at 7:00 o'clock P.M., at 100 E 1st St for the purpose of hearing support, opposition, criticism, suggestions or observations of taxpayers relating to setting the final tax request. Grand Island Special Meeting - 8/30/2022 Page 9 / 14 City of Grand Island Tuesday, August 30, 2022 Special Meeting Item E-2 Public Hearing on FY 2022-2023 General Property and Community Redevelopment Authority (CRA) Tax Request Council action will take place at the Regular Meeting of August 30, 2022 under Resolutions item I-1. Staff Contact: Patrick Brown Grand Island Special Meeting - 8/30/2022 Page 10 / 14 Council Agenda Memo From:Patrick Brown, Finance Director Meeting:August 30, 2022 Subject:General Property Tax Request for City and CRA Presenter(s):Patrick Brown, Finance Director Background Legislative Bill 103 was signed into law in 2019 stating if the annual assessment of property would result in an increase in the total property taxes levied by a county, municipality, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year’s rate of levy, such political subdivision’s property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision’s rate of levy for the current year shall be decreased accordingly when such rate is set by the county board of equalization pursuant to section 77-1601 of the Revised Statutes of Nebraska. If the City of Grand Island seeks to set its property tax request at an amount that exceeds its property tax request from the prior year, it may do so after holding a public hearing and by passing a resolution or ordinance. Discussion 2022 Valuations for the City of Grand Island increased over the 2021 valuation by $194,988,808 or 5%. If the City applies the FY2021-2022 mill levy of 0.3441 to the new valuation of $3,821,381,633, the City’s Property Tax revenue would be $13,149,374, a tax increase of $669,594 over the prior year. The City and Community Redevelopment Authority tax ask for FY2023 is $12,960,137. If the City and CRA applies the FY2021-2022 Property Tax Ask to the new valuation there would be no tax increase and the mill levy would decrease to 0.3266 for the City and CRA. The following is a breakdown of mill levies for City General and CRA property tax request. Grand Island Special Meeting - 8/30/2022 Page 11 / 14 Entity 2022 Mill Levy 2023 Proposed Mill Levy City General Property Tax Levy 0.3236 0.3195 City General Property Tax Levy for CRA 0.0205 0.0197 Total General Property Tax Levy 0.3441 0.3392 Recommendation Approve decreasing the mill levy to 0.3392 in order to request $12,207,540 of Property Tax for City general and decreasing CRA’s mill levy to 0.0197 in order to request $752,597 of Property Tax for FY2023 for a total request of $12,960,137. Sample Motion Move to approve the General Property Tax Request for City and CRA. Grand Island Special Meeting - 8/30/2022 Page 12 / 14 City of Grand Island Tuesday, August 30, 2022 Special Meeting Item E-3 Public Hearing on FY 2022-2023 Annual Budget for Parking District #2 (Ramp)Tax Request Council action will take place at the Regular Meeting of August 30, 2022 under Resolutions item I-2. Staff Contact: Patrick Brown Grand Island Special Meeting - 8/30/2022 Page 13 / 14 Council Agenda Memo From:Patrick Brown, Finance Director Meeting:August 30, 2022 Subject:Downtown Improvement District #2 (Ramp) Property Tax Request Presenter(s):Patrick Brown, Finance Director Background Legislative Bill 103 was signed into law in 2019 stating if the annual assessment of property would result in an increase in the total property taxes levied by a county, municipality, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year’s rate of levy, such political subdivision’s property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision’s rate of levy for the current year shall be decreased accordingly when such rate is set by the county board of equalization pursuant to section 77-1601 of the Revised Statutes of Nebraska. If the Downtown Improvement District #2 (Ramp) seeks to set its property tax request an amount that exceeds its property tax request from the prior year, it may do so after holding a public hearing and by passing a resolution or ordinance. Discussion 2022 Valuations for the Downtown Improvement District #2 (Ramp) increased over the 2021 valuation by $9,762,744 or 17%. The Downtown Improvement District #2 (Ramp) is not requesting an increase in Property Tax thereby reducing the mill levy from 0.01409 to 0.01204. The Downtown Improvement District #2 (Ramp) Property Tax revenue request is $8,080. Recommendation Administration recommends to approve the Downtown Improvement District #2 (Ramp) Property Tax request of $8,080 and set the mill levy at 0.01204. Sample Motion Move to approve. Grand Island Special Meeting - 8/30/2022 Page 14 / 14