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08/08/2022 - City Council Regular SPECIAL CITY COUNCIL MEETING TUESDAY AUGUST 8, 2022 5:30 P.M. EAGAN ROOM – EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. ELECTRIC VEHICLE CHARGING STATION STANDARDS IV. DELTA/UNISYS SITE RFP REVIEW V. 2023 GENERAL FUND BUDGET UPDATE VI. ARPA PLAN REVIEW VII. OTHER BUSINESS VIII. ADJOURNMENT Agenda Information Memo August 8, 2022 Special City Council Workshop III. Electric Vehicle Charging Stations Direction for Consideration: Provide direction to staff for proposed City Code amendments to Chapter 11 regarding Electric Vehicle Charging Stations Background ➢ City Council was provided information within the April 1, 2022 Additional Information Memo regarding recent inquiries for installation of Electric Vehicle Charging Stations (EVCS). At the April 5th Listening Session Council directed staff to conduct research and provide an update at a future Council Workshop. ➢ The City has recently received inquiries and applications to install EVCS on commercial properties. Several businesses have installed EVCS to meet demand for both customers and employees, most involving Level 2 chargers. Below is a list of existing EVCS within the City. City Council recently approved Level 3 EV Charging facilities proposed at Cub Foods and Twin Cities Premium Outlets through review of a Planned Development Amendment. ➢ EVCS are classified according to three levels: o Level 1: Slow charging generally operating on a 120-volt AC circuit. Only involves a direct connection to existing wall socket. o Level 2: Medium charging generally operating on a 208 or 240 -volt AC circuit. More equipment than Level 1, but less intrusive than Level 3. o Level 3: Fast or Rapid charging operating on a 480-volt or higher three phase circuit. Involves installation of larger equipment due to high volt output. Business Name Address # of EV Chargers Charging Level Notes Hy-Vee 1500 Central Park Commons Dr 4 L2 Eagan Comm. Ctr 1501 Central Parkway 2 L2 Staybridge Suites 4675 Rahncliff Road 4 L2 Tesla and Standard Hilton Garden Inn 1975 Rahncliff Ct 4 L2 Tesla and Standard Lebanon Hills 860 Cliff Road 2 L2 Thomson Rueters 610 Opperman Dr 4 L2 Cub Foods 1940 Cliff Lake Rd 12 L3 Recently Approved - Tesla Only TCPO 3965 Eagan Outlets Parkway 6 L3 Recently Approved - Standard Chargers ➢ While all-electric EVs accounted for only approximately 3.4 percent of light -duty vehicles sold in the U.S. in the fourth quarter of 2021, this number rose significantly over the prior year, and is expected to continue to grow exponentially. New government mandates aim to scale back conventional engines and boost EV sales by 50% by 2030. The Biden administration recently allocated $7.5 billion in funding to grow EV char ging station networks across the country ➢ Most electric vehicle charging occurs at home with overnight charging on Level 1 or Level 2 chargers. Level 1 and 2 are most commonly found at home, businesses and work. Level 3, or DC Fast, are expensive and are intended to serve as “opportunity” charging to the general public and placed in destination locations along major transportation corridors and occasionally at shopping centers, hotels, and grocery stores. ➢ Planning staff presented the below information to the Advisory Planning Commission at its June 28th APC Workshop. Findings ➢ Staff researched communities that have adopted EV Charging ordinances, including Lakeville, St. Louis Park, Bloomington, Richfield, Medina, and Oakdale (working draft). ➢ All of the ordinances provide general performance standards regarding installation of EV Charging Stations (i.e. allowable zoning districts, setbacks, general location, etc.). Use by Right/Accessory to Principal Use ➢ Three cities (Lakeville, St. Louis Park, and Medina) allow Level 1 and Level 2 EV charging facilities within all zoning districts as an accessory use. Level 3 charging facilities were restricted to non-residential zoning districts. ➢ Three cities (Bloomington, Richfield, and Oakdale) allow all three charging levels (Levels 1, 2, and 3) within all zoning districts when accessory to a primary use. ➢ St. Louis Park, Medina, and Bloomington categorize standalone retail Level 3 charging facilities (not intended as an accessory use to a principal use) as a gas/fueling station. Standalone Level 3 facilities are then only allowed within commercial zoning districts where gas/fueling stations are permitted. EV-Installed/EV-Ready/EV-Capable ➢ Some cities are requiring minimum infrastructure improvements for future EV Charging Stations at time of development. EV-Installed refers to a fully installed system with a charger available for use. EV-Ready generally is the installation of most of the necessary EV infrastructure, excluding the EV charger. EV-Capable means there is a dedicated electrical panel for a future EV parking space, installation of other EV charging equipment is still necessary. ➢ St. Louis Park, Medina, Richfield, Oakdale (draft ordinance), and to a lesser extent Bloomington, include “recommended” EV-Ready and EV-Capable provisions for new and/or redeveloping property. ➢ All of the above communities have recommended minimums for EV-Installed, EV-Ready, and EV-Capable for both multi-family and non-residential uses. All cities vary in ratios of recommended EV-Installed, Ready and Capable facilities. Here are two examples for multi-family requirements: o Medina: More than 10 multi-family units - EV-Installed: 5% (of all parking), EV- Capable: 20%, EV-Ready: 10% o St. Louis Park: Less than 49 parking spaces in multi-family development - EV- Installed: 5% (Level 1 chargers), 50+ parking spaces – EV Installed: 10% (Level 1, with minimum of one Level 2 charger); EV-Ready: 10% of all parking (Level 2) ➢ Medina incentivizes EV installation by flexing performance standards for new development such as reduced building and landscape setbacks, reduced landscaping, and density bonuses. Parking Allowance/Calculation ➢ All of the cities allowed EV Parking to be counted toward meeting the minimum parking standards. EV Vehicle Reserved ➢ Some of the cities specified that EV stalls are reserved for electric vehicles only. Bloomington has similar reservation language; however, it includes a provision that non- EV vehicles can park in EV stalls when parking lots comprise of 5% or more EV parking. ADA Requirements ➢ Most cities include provisions that EV Charging Stations must meet ADA standard s. o Lakeville simply notes “devices shall be mounted to comply with applicable building codes and relevant ADA requirements”. o Oakdale includes more descriptive ADA requirements. ➢ Most of the communities required at least one EV stall be ADA accessible when multiple charging stations are present. Some cities provided credit if the EV charger was immediately adjacent and accessible to an ADA stall. APC Recommendations ➢ At the June 28th APC workshop, the Commission favored adopted general performance standards, recommended that EV Charging Stations be accepted as accessory uses, and recommended against implementing EV-Install or EV-Ready requirements. Next Steps ➢ Staff would prepare a memo for an upcoming City Council meeting to direct staff to begin preparation of an ordinance amendment. ➢ Staff would work with the Advisory Planning Commission on a draft ordinance. Policy Questions 1. Should general performance standards be developed for EV Charging Stations? 2. Should Level 1 and 2 Charging Stations be considered accessory to a principal use in all zoning districts? 3. Should Level 3 Charging Stations also be considered accessory but allowed only within commercial, industrial, institutional districts (prohibited in residential zones)? Or should they require Conditional Use Permit or PD Amendment approval? 4. Should the City implement minimum EV-Installed, EV-Ready, and EV-Capable provisions for new or redeveloping sites? Attachments (1): ➢ Presentation EV Charging Stations City Council Workshop August 8, 2022 EV Charging –EV Charging Levels Level 1 Charging: Common household outlet of 120v, slowest method -24 hours or more for full charge. Level 2 Charging: Need 208-240v outlet. Level 2 chargers are most recommended chargers. Level 2 can charge a vehicle 5x as quickly as Level 1 (26 miles per hour charge). Level 3 Charging: Also known as DC Fast, the fastest charging. Can fully charge EV battery in about half an hour. > 240v EV Charging –Level 2 Hy-Vee Hilton Garden Inn EV Charging –Level 3 EV Charging –Existing Eagan Facilities Business Name Address No. of EV Chargers Charging Level Notes Hy-Vee 1500 Central Park Commons Dr 4 L2 Eagan Comm. Ctr 1501 Central Parkway 2 L2 Staybridge Suites 4675 Rahncliff Road 4 L2 Tesla and Standard Hilton Garden Inn 1975 Rahncliff Ct 4 L2 Tesla and Standard Lebanon Hills 860 Cliff Road 2 L2 Thomson Rueters 610 Opperman Dr 4 L2 Cub Foods 1940 Cliff Lake Rd 12 L3 Recently Approved - Tesla Only TCPO 3965 Eagan Outlets Parkway 6 L3 Recently Approved - Standard Chargers EV Charging –Researched Communities •Lakeville •St. Louis Park •Bloomington •Richfield •Medina •Oakdale (Not codified) EV Charging –Allowed Zoning •Allowed all charging levels as accessory use to principal use •Level 1 and 2 charging stations allowed in all zoning districts (residential and non-residential) •Level 3 charging stations restricted to non-residential zoning districts in half the communities •restricted: Lakeville, Medina and St. Louis Park •no restriction: Bloomington, Richfield and Oakdale spreadsheet EV Charging –Performance Standards •Setbacks •Ease to locate •Protective barriers •Hours of operation •ADA compliance •Maintenance of chargers •Counted toward min. parking •Incidental or wayfinding signage •Use by non-EV vehicles •Specific charging requirements •Retractable / Hanging Cords •Voice activation •Not blocking walkways •Reference to dimensional standards –min. parking dimensions •Required site lighting EV-Installed/EV-Ready/EV-Capable More Common Less Common EV Charging –Standards Not Included •Lack of screening requirements, primarily for electric supply equipment (Level 3) •May be located in other Code provisions regarding screening may be applicable •No reference to size limits of media screens EV Charging –EV-Ready Ordinances •4 of 6 communities included EV-Ready requirements •Adopted readiness plans or included in Comp Guide Plans for renewable energy or green infrastructure •Communities varied by residential / non-residential, number/percent parking required, triggers EV Charging –Policy Questions 1.Should general performance standards be developed for EV Charging Stations? 2.Should Level 1 and 2 Charging Stations be considered accessory to a principal use in all zoning districts? 3.Should Level 3 Charging Stations also be considered accessory but allowed only within commercial, industrial, institutional districts (prohibited in residential zones)? Or should they require Conditional Use Permit or PD Amendment approval? 4.Should the City implement minimum EV-Installed, EV-Ready, and EV-Capable provisions for new or redeveloping sites? Questions? Agenda Information Memo August 8, 2022 Special City Council Workshop IV. Request for Proposals – Small Area Plan for Delta/Unisys Sites Direction for Consideration: Provide direction to staff regarding the Request for Proposals for a Small Area Plan for the Delta and Unisys sites. Background ➢ The Delta and Unisys sites are located within the Central Commons Special Area, one of four special areas created within the Eagan Comprehensive Plan to allow more focused planning efforts to direct policy for infill development and redevelopment where specialized mix-use development has occurred or will likely occur. ➢ Special Area plans have been prepared as policy documents to be used when land use, site, building, zoning or circulation changes are proposed. ➢ The 71-acre Project Area is located in the northwest quadrant of the Central Commons Special Area, west of Pilot Knob Road and south of Towerview Road. The site consists of two parcels: o The Delta parcel consists of 39 acres and a 335,000 square foot building originally constructed in the 1980’s as a semi-conductor manufacturing facility and later used as a flight operations and support center for Northwest/Delta airlines. The building is currently largely vacant. o The Unisys parcel consists of 32 acres and a 312,000 square foot building constructed in 1986 as part of the Sperry Univac campus and currently partially used by Unisys for a data center and support functions. The building is currently being marketed for sale. ➢ The Finance Committee met on March 30, 2022 and discussed several office sites within the City that are likely to be sold and possibly redeveloped. ➢ The Finance Committee felt that the City had a strong interest in guiding development at the Delta and Unisys sites due to the site’s high visibility in the community, the location within the Central Commons Special Area, and the adjacency to one of the City’s largest investments at Central Park and the Eagan Community Center. The Finance Committee directed staff to draft a request for proposals for master planning. ➢ Staff has drafted a request for proposals for a small area plan which will gather community input on goals and desires for the Project Area, provide a process for evaluating land use changes and additional development, consider public infrastructure needs and costs, and provide analysis of City revenue impacts of development scenarios. ➢ A completed small area plan should provide clarity for property owner and developers and a more efficient land use approval process for all parties. Request for Proposals (RFP) ➢ The RFP includes background information on the City, the Central Commons Special Area, and the Project Area. ➢ The RFP provides information on significant public investments in the Project Area including Central Park, wells and raw water distribution lines, county and city roads, and Sperry Tower. ➢ The RFP defines City goals for the project including: o Jobs and tax base. The City’s goal is to maximize commercial tax base and jobs within the Project Area. o Eagan Forward. The Project Area planning process and its outcomes should reflect the Eagan Forward vision. o City facilities and amenities. The final plan shall protect the City’s investments in the Central Park area and enhance opportunities for public recreation and interaction. o Public engagement. Public engagement in the planning process shall be transparent, comprehensive, and authentic and shall reflect the City’s goals for racial equity and inclusion. ➢ The RFP identifies project components and deliverables as follows: o Community Engagement Plan. A phased Community Engagement Plan, with emphasis on gathering input from diverse demographic groups, will seek input from property owners, stakeholders, the Metropolitan Council, appointed and elected officials, and the community throughout the duration of the project. o Assessment of existing conditions and market demand. Deliverables include a report on existing site conditions and potential for reuse and a market analysis for new/additional uses including market absorption rates. o Analysis of public amenity needs in Project Area. Deliverables include color maps depicting options for recreational amenities and infrastructure, narrative describing how improvements advance identified park goals and enhance the Central Commons area, and estimates of park development costs. o Analysis of public infrastructure needs in Project Area. Deliverables include capacity analyses for transportation, sanitary sewer, and storm sewer systems and a water system analysis. o Concept plans. The consultant will develop three small area plan concepts for presentation to stakeholders, the community, and appointed and elected officials. The City Council will provide direction on a preferred plan. o Revenue impact to City and demands for public services. The consultant will work with Northland Securities, Inc. to evaluate City revenue impacts, with focus on property tax revenue, of concept plans and estimate demands and costs for public services and infrastructure. The consultant will prepare high-level cost and revenue analyses for each concept plan and detailed analysis for the preferred small area plan. o Final small area plan. The final small area plan shall include full color maps, narrative description of map elements, phasing plans for development and public investments, and GIS mapping data and files. ➢ The RFP defines submission requirements and the selection process. Cost and Budget ➢ Due to labor shortages and cost increases, staff is only able to provide an estimate of the cost for the small area plan. Best estimates are a range of $300,000 to $450,000. ➢ The cost of the study is not included in the adopted 2022 or proposed 2023 budget. The Community Investment Fund would be the proposed funding source for the project (current balance is $3.07 million). ➢ It is unknown at this time whether the Project Area would qualify as a TIF District. ➢ The City may want to establish an interfund loan to provide an opportunity for reimbursement from tax increment, abatement, or other future sources of revenue. Argosy Site ➢ Argosy University constructed an 84,408 square foot building on an 8.38-acre site south of the Eagan Community Center in 2003. As part of the development approvals, Argosy agreed to provide 664 shared parking spaces on its site for use for community events at Central Park. The City provides 90 spaces of shared parking for the Argosy site at the Eagan Community Center. ➢ The Argosy building has been vacant for at least two years and was proposed to be redeveloped by Thompson Thrift with luxury rental townhomes. ➢ Citing increasing construction costs, Thompson Thrift recently withdrew its proposal to purchase the Argosy site. ➢ The broker for the Argosy site has indicated that if they are unable to reach a deal in the short term to sell the property to a user which can use the existing building, they will likely demolish the building before the end of the year due to the high costs of maintaining a vacant structure. ➢ As a policy question, the City Council will be asked whether the Argosy site should be included in the RFP. Policy Questions 1) Does the City Council support the City goals for the project as described above? 2) Does the City Council support the identified project components and deliverables? 3) Should a budget be established and communicated to proposers? If so, what is the budget? 4) Should the Argosy site be included in the RFP? Attachments (5): ➢ Presentation ➢ Draft Request for Proposals ➢ Map – Eagan Central Commons Special Area ➢ Map – Project Area and surroundings ➢ Map – Central Common Special Area Land Uses Request for Proposals Small Area Plan Delta/Unisys Sites City Council Work Session August 8, 2022 Background Located within the Central Commons Special Area Delta •39 acres, 335,000 square foot building •Use as flight operations and support center •Currently largely vacant Unisys •32 acres, 312,000 square foot building •Portion of building currently used for data center and support functions Background Finance Committee –March 30, 2002 •City has strong interest in guiding development •High visibility within the community •Location within Central Commons Special Area •Adjacency to Central Park and Eagan Community Center •Direction to draft request for proposals Objectives for Planning Process Community engagement Process for evaluating land use changes and additional development Consider public infrastructure needs and costs Analysis of City revenue impacts Clarity to property owners and developers More efficient development process Request for Proposals Public investments •Central Park •Wells and raw water distribution lines •County and city roads •Sperry Tower Project components and deliverables Submission requirements and selection process Staff review of RFP City Goals Maximize commercial tax base and jobs within the Project Area. Planning process and outcomes should reflect the Eagan Forward vision. Protect the City’s investments in the Central Park area and enhance opportunities for public recreation and gathering. Public engagement shall be transparent, comprehensive, and authentic and shall reflect the City’s goals for racial equity and inclusion. Components and Deliverables Community Engagement Plan Emphasis on diverse demographic groups Property owners, stakeholders, community, officials Duration of project Assessment of existing conditions and market demand Existing conditions Potential for reuse Market analysis and absorption rates Components and Deliverables Analysis of public amenity needs Options for amenities and infrastructure Advance Parks Master Plan goals Cost estimates Analysis of public infrastructure needs Analyses for transportation, sanitary sewer, storm sewer, water systems Modeling criteria established by City Engineering Components and Deliverables Concept plans 3 concept plans to be developed Community and stakeholder feedback Direction from City Council Revenue impact to City and demands for public services Focus on property tax revenue Estimate demands and costs for public services and infrastructure Final plan Maps, narrative, phasing plan Cost and Budget Cost estimate is $300,000 -$450,000 Not included in 2022 or draft 2023 budget Community Investment Fund Interfund Loan Argosy 84,408 square foot building on 8.38-acre site Shared parking •664 spaces –Argosy •90 spaces –ECC Thompson Thrift proposal withdrawn Property owner options Policy Questions 1.Does the City Council support the City goals for the project? 2.Does the City Council support the identified project components and deliverables? 3.Should a budget be established and communicated to proposers? If so, what is the budget? 4.Should the Argosy site be included in the RFP? 1 Request for Proposals (RFP) Northwest Central Commons Small Area Plan Delta/Unisys Sites City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 Date, 2022 2 1. Introduction The City of Eagan (“City”) is seeking proposals from qualified consultants to assist with preparation of a plan for the potential reuse and/or redevelopment of the former Delta Airlines operations center and the current Unisys data center sites in central Eagan (the “Project Area”). The City is a municipality located in Dakota County in the southern Twin Cities Metropolitan Area. Eagan has a population of approximately 70,000 and is home to over 2,300 businesses including major regional employers such as Thomson Reuters, Blue Cross Blue Shield, Coca Cola, the US Postal Service, Ecolab, Prime Therapeutics, and the Minnesota Vikings. The City has a diverse housing stock of nearly 30,000 units, with over fifty percent of the units being either attached townhomes or multifamily style units. The City’s explosive growth years came during the late 1970’s to early 1990’s when well over half of the City’s housing stock was built. In recent years, Eagan has added over 2,000 new multifamily housing units of various types and income levels. The Eagan Mayor and Council are elected at large to serve four-year staggered terms. They are elected to make decisions on behalf of the City's residents, adopt and oversee the City's annual budget and set the annual property tax levy. They are responsible for policy decisions including land use, program development, ordinances, and awards of contracts. The City Council appoints a City Administrator who oversees day-to-day operations of the City and ensures Council decisions are implemented. 2. Central Commons Special Area The subject site is located within the Central Commons Special Area, one of four special areas created within the Eagan Comprehensive Plan to allow more focused planning efforts to direct policy for infill development and redevelopment where specialized mixed-use development has occurred or will likely occur. Special Area plans have been prepared as policy documents to be used when land use, site, building, zoning or circulation changes are proposed. Special Area plans are intended to be flexible to allow for creative private sector responses to meet the City’s vision. The Central Commons is a large 862-acre area surrounding the intersections of Pilot Knob Road, Yankee Doodle Road and Interstate 35E. It is identified as a special area because of the community’s desire to have a central focal point and an integrated, mixed-use place that can serve as a destination for shopping, dining, living, working and recreating. While the Central Commons area is fully developed, due to continued high market demand in the City, change and redevelopment within the Central Commons has regularly occurred since 1995 and is likely to continue. The 71-acre Project Area is located in the northwest quadrant of the Central Commons Special Area, west of Pilot Knob Road and south of Towerview Road. The site consists of two parcels, each with a 300,000+ square foot corporate building constructed in the 1980’s as part of the Sperry Univac campus. The westernmost building was originally constructed as a semi-conductor manufacturing facility but was later sold and used by Northwest/Delta airlines as a flight operations and support center. The easterly building constructed in 1986 is currently being used by Unisys partially as a data center and other 3 support functions. Both existing buildings in the Project Area are currently at least partially vacant, privately-owned, and have been marketed for sale. The current property owners are stakeholders and should be engaged by the consultant in the planning process. The original Sperry Rand (Univac) building was constructed at Pilot Knob Road and Yankee Doodle Road in 1966 with later additions and eventual occupancy by Lockheed Martin. Lockheed Martin consolidated operations elsewhere in the United States and that site was sold and redeveloped in 2015 as the Central Park Commons commercial area. Subsequent to the Sperry Univac development, the City acquired a 56-acre property in the middle of the campus for a future park and community center. The Eagan Community Center and surrounding park were completed in 2003 and serve as the City’s central community event space. The community center includes open gym, workout training, meeting, and convention space. Central Park and the Eagan Festival Grounds hosts several large annual community events including Funfest, the Eagan Art Festival, Eagan Food Truck Festival, and weekly Market Fest. 3. Public Infrastructure Central Park. The City’s 56-acre Central Park is located immediately adjacent to the Project Area and is the City’s primary community gathering and recreation hub. Central Park has two large community pavilions, a bandshell, Core Valley Fitness Park, and a heavily used splash pad. The park hosts large- scale community events including Market Fest, 4th of July Fun Fest, Eagan Art Festival, and Food Truck Fest. The 50,000+ square foot Eagan Community Center is located within Central Park and includes a fitness center, indoor playground, senior center, and banquet/meeting/event spaces. Wells and distribution lines. Several city wells are located in and around the Project Area and raw water lines around the site perimeter feed the Eagan North Water Treatment Facility at Coachman Road and Yankee Doodle Road. The City will require continued use and easements over distribution lines and wells to protect the water supply infrastructure. A private well at the Unisys building remains open. The City is interested in using the private well as a monitoring site per a Minnesota Department of Natural Resources requirement. The well’s location, however, may be challenging for that purpose. County and City roads. The site is currently served from Pilot Knob Road (Dakota County Highway 31) via Towerview Road from the north. A private drive serves the westerly building with a private city- maintained connection through Central Park to Central Parkway. A full, private driveway access to Pilot Knob Road is located near the south property line of Unisys. Travel demand based on future land use mix will determine need for public right-of-way dedication and intersection improvements. Dakota County may restrict full access to Pilot Knob Road from Towerview Road and/or Unisys driveway if future land uses impact current trip generation. Sperry Tower. The City currently owns and manages a tower structure on a one-acre property along Towerview Road. The tower was constructed as a cellular co-location site, replacing a decommissioned water reservoir at this location. The City has equipped the tower with lights that can be programmed to change colors based on community selected themes. The tower shall remain viewable in the community 4 and not significantly blocked by adjacent tall structures. The City has limited GIS mapping data that may be available identifying public and private infrastructure in the Project Area. 4. City Goals for Project Jobs and tax base. The City has one of the largest and occupationally diverse employment bases in the Twin Cities region with over 60,000 jobs in 2019. Pandemic related relocations, market changes, and employer working options have affected the City’s employment base which is currently experiencing a slower job recovery than the region. As of the fourth quarter of 2021, the City’s businesses employ approximately 53,000 people. The City’s goal is to maximize commercial tax base and jobs within the Project Area. Eagan Forward. In 2016 the City completed Eagan Forward, a 20-year community vision which identified five strategies to guide the City into a future in which reuse and redevelopment are common; demographic, technologic, and economic forces drive change; and diverse residents want to be engaged in decision-making. The five identified strategies are: 1. Eagan is a Place for All People 2. Eagan is a Healthy Community 3. Eagan is Creative & Innovative 4. Eagan is a Destination 5. Eagan has an Updated Brand The Project Area planning process and its outcomes should reflect the Eagan Forward vision. City facilities and amenities. The City has made significant public investments in Central Park and the Eagan Community Center. The Parks Master Plan identifies needs for additional park investments and amenities. The final plan shall protect the City’s investments in the Central Park area and enhance opportunities for public recreation and interaction. Public engagement. The Project Area is located in a highly visible area of central Eagan adjacent to destination City facilities. Public engagement in the planning process shall be transparent, comprehensive, and authentic and shall reflect the City’s goals for racial equity and inclusion. 5. Project Components and Deliverables Community Engagement Plan. The consultant will develop a phased Community Engagement Plan which will seek input from property owners, stakeholders, the Metropolitan Council, appointed and elected officials, and the community throughout the duration of the project. Emphasis should be placed on gathering input from demographic groups which have been historically underrepresented in community engagement. 5 Deliverables: • Communications documents for distribution to the public and stakeholders (i.e., emails, letters, articles, social media posts). • Meeting notes and summaries focused on topics/outcomes for each engagement activity. • Final engagement report that details all engagement activities and the way that community input shaped the master plan. Assessment of existing conditions and market demand. The consultant will assess the existing conditions of the site and improvements including buildings and infrastructure. The consultant will determine the feasibility of reuse of all or a portion of existing improvements. The consultant will complete a market analysis to determine feasibility of redevelopment or additional uses including timeframes for market absorption. Deliverables: • Report on existing site conditions and improvements and potential for reuse. • Market analysis for new/additional uses including market absorption estimates. Analysis of public amenity needs in Project Area. The consultant will evaluate the potential for locating park amenities and infrastructure needs identified in the City’s Park Master Plan within the Project Area. The evaluation will include options for shared parking including connections and accessibility, trails, infrastructure to support recreation and activities, and infrastructure to support existing and new special events programmed for the Central Park grounds and Eagan Community Center. Deliverables: • A written report including color maps depicting options for recreational amenities and infrastructure. The report will include the following: o Narrative describing how suggested park improvements advance goals identified in the Parks Master Plan; o An explanation of how suggested improvements enhance existing amenities and activities in the Central Commons area; o Estimates of development costs including land acquisition, grading, infrastructure, and construction. Analysis of public infrastructure needs in Project Area. The consultant will evaluate public infrastructure needs to support development or redevelopment in the Project Area. With consideration of existing transportation system capacity and identified recommendations in the City’s Transportation Master Plan and Dakota County’s 2040 Transportation Plan, the consultant should determine whether transportation system improvements. The consultant should provide concept designs for the internal multimodal transportation system and connections to the multimodal transportation system outside of the Project Area. The consultant will develop a sanitary sewer capacity analysis to provide parameters on land use intensity, placement, and right-of-way needs that includes identified recommendations in the City’s 6 Wastewater Master Plan. The analysis shall be in a narrative format and be supported by SewerGEMS (Bentley) Modeling. The consultant will develop a storm sewer capacity analysis that includes identified recommendations in the City’s Stormwater Master Plan and is in narrative format and is supported by PCSWMM Modeling. Modeling should account for the NOAA Atlas 14 (Volume 8, Version2) ten percent probability (10-year) and one percent probability (100-year) 24-hour rainfall events. The analysis should account for potential onsite stormwater infrastructure and easement needs. With consideration of identified recommendations in the City’s Finished Water Master Plan, the consultant will develop a water system analysis that will provide parameters on land use intensity and placement and inform right-of-way needs. The water system analysis will include recommendations for well and distribution system protection requirements. The analysis will be focused on higher level infrastructure and not individual property connections and minor water line connections. The analysis shall be in a narrative format and be supported by WaterGEMS (Bentley) Modeling. Deliverables: • A transportation capacity analysis • A sanitary sewer capacity analysis • A storm sewer capacity analysis • A water system analysis. Concept plans. The consultant will develop three small area plan concepts which will identify, at a minimum, parks and open space amenities and infrastructure, transportation infrastructure, public utility (water, sanitary sewer, stormwater) options, water distribution protection zones, and land uses. The Community Engagement Plan will address how concept plans will be presented to stakeholders, the community, and appointed and elected officials. The City Council will provide direction on a preferred plan. Deliverables: • Full color concept plan maps showing allocated land uses, parks/open space, park amenities and infrastructure, transportation network (streets/trails), public utility (water, sanitary sewer, stormwater) infrastructure, and water distribution protection zones. • Narrative description of map elements shall be provided for each concept plan. Revenue impact to City and demands for public services. The consultant will work collaboratively with the City’s financial advisor, Northland Securities, Inc., to compare City revenue impacts, with focus on property tax revenue, of concept plans and estimate demands and costs for public services and infrastructure. High-level cost and revenue analyses will be created for each concept plan. Following City Council direction regarding a preferred concept, a detailed cost and revenue analysis will be prepared and included in the final report. The City will contract separately with its financial advisor, Northland Securities, Inc.. 7 Deliverables: • High-level cost and revenue analyses for each concept plan. • Detailed cost and revenue analysis for preferred small area plan. Final small area plan. The consultant will prepare a final small area plan which shall include a full color map(s) showing proposed allocated land uses, park/open space, park amenities and infrastructure, multimodal transportation network, public utility (water, sanitary sewer, stormwater) infrastructure, and water distribution protection zones. The consultant shall provide phasing plans for development and redevelopment including phasing for public infrastructure and amenity investments. Deliverables: • Full color small area plan map/s showing allocated land uses, parks/open space, park amenities and infrastructure, multimodal transportation network including right-of-way widths, public utility (water, sanitary sewer, stormwater) infrastructure, and water distribution protection zones. • A narrative description of map elements shall be included. • GIS mapping data and files in ESRI format shall be provided. Map documents shall be provided in pdf and ArcGIS Pro format. All project deliverables shall be provided for staff review at an appropriate time within the project schedule and included in the final plan. Final plan revisions as directed by staff and the City Council shall be included. The final plan shall be provided in both PDF and Word format. 6. Submission Questions regarding the RFP shall be submitted in writing to Jill Hutmacher, Director of Community Development, at jhutmacher@cityofeagan.com no later than noon on __________________. Written responses to all questions received will be posted at _______________ no later than 4:00 p.m. on _______________________. No oral questions on the RFP will be accepted. The RFP submission deadline is noon on ____________________. Proposals shall be in pdf format and submitted electronically to jhutmacher@cityofeagan.com. Submissions shall be a maximum of 12 pages including the cover letter. Submissions shall include: • A project timeline with identified milestones, phases, dates for submission of draft deliverables, and decision-making deadlines • A schedule of project meetings including participants and meeting goals • Scope of work including the components and deliverables listed in this RFP • Any proposed modifications to the planning process described in this RFP • Project budget including reimbursable expenses and the cost distribution between components and deliverables • Project team including project roles, estimated hours, experience on similar projects, and hourly cost • Expectations for City resources (data, mapping, staff time, etc.) for each component • References including at least two from municipal organizations 8 • Description of the nature, magnitude, and current status of any claims or suits against any project team members – individuals or firms – within the last three years in any matter related to professional activities • In addition to the 12-page proposal, consultants may submit up to 15 pages with resumes of team members and information on similar projects by the project team 7. Selection and Schedule The following criteria will be considered in the selection process: • The responsiveness to RFP, completeness of the RFP, and adherence to submission requirements • Demonstrated understanding of City goals, project components, and deliverables • Experience of project team on similar projects • Proposed budget and allocation of costs • Feasibility of proposed timeline Interviews with finalist consultants are scheduled for _________________________. City Council contract approval is anticipated to occur in ______________ 2022, and contract work is expected to begin within 30 days of contract approval. The City in its sole and absolute discretion, reserves the right to determine whether any aspect of the proposal satisfactorily meets the criteria established in this RFP; the right to seek clarification from any proposer; the right to negotiate with any proposer; the right to reject any or all proposals with or without cause; the right to waive any or all informalities or irregularities in the proposals received; the right to investigate the qualifications or experience of any proposer; and the right to cancel, withdraw and/or amend any and all parts of the RFP. The City further reserves the right to request additional information or clarification and to allow corrections or errors or omissions during the evaluation process. 8. Non-Collusion Proposers shall not collude with other proposers or competitors or take any other action that will restrict competition. Violation of this provision may result in rejection of an otherwise complete proposal. 9. Contract Language The following provisions will be included in a consultant contract. Data Practices. Pursuant to Minn. Stat. § 13.05, subd. 11, all of the data created, collected, received, stored, used, maintained, or disseminated by Consultant in performing an owner’s function under this Agreement is subject to the requirements of the Minnesota Government Data Practices Act, Minnesota 9 Statutes Chapter 13, and Consultant must comply with those requirements as if it were a government entity. Right In Work Product. The work product of Consultant's services, including results, and all ideas, developments, and inventions which Consultant conceives or reduces to practice during the course of his performance under this Agreement and subsequently reimbursed for by the City for such work shall be the exclusive property of the City. This information, and material, and any such inventions shall be deemed the City's proprietary information and shall not be disclosed to anyone outside of the City or used by Consultant or others without the prior written consent of the City. Provided, however, the Consultant has the right to reuse such information and material in the normal course of its business and retains all rights in its standard drawing details and specifications, and in all field data, notes and databases. Other than reuse or modification by the Consultant, the City waives all claims against the Consultant resulting from any changes or reuse of such information and material. The Consultant will furnish the City with electronic data versions of certain drawings or other written documents ("Digital Data") compatible with the City's software (to the extent possible) unless otherwise agreed upon and/or provided in hard copy form. In the event of any conflict between a hard copy document and the Digital Data, the hard copy document governs. The Digital Data shall be prepared in the current software in use by the Consultant and is not warranted to be compatible with other systems or software. Any Digital Data submitted by the Consultant to the City is submitted for an acceptance period of 60 days ("Acceptance Period"). Any defects that the City discovers during this period and reports to the Consultant will be corrected by the Consultant at no extra charge. For correction of defects reported to the Consultant after the Acceptance Period, the City shall compensate Consultant on an hourly basis at Consultant's billing rates. The City understands that the Digital Data is perishable and the City is responsible for maintaining it. Nondiscrimination in employment. For work under this Contract the Contractor must agree: A. That in the hiring of common or skilled labor for the performance of any work under this Contract or any subcontract hereunder, no contractor, material supplier or vendor shall, by reason of race, creed, color or national origin, discriminate against the person or persons who are qualified and available to perform the work to which such employment relates. B. That no Contractor, material supplier or vendor shall, in any manner, discriminate against or intimidate or prevent the employment of any person or persons, or on being hired, prevent or conspire to prevent any person or persons from the performance of the work under this Contract on account of race, creed, color or national origin. C. Violation of this section shall be cause for cancellation or termination of this Contract. Contractor’s obligations to subcontractors. The Contractor shall pay any subcontractor within ten days of the Contractor's receipt of payment from the Owner for undisputed services provided by the subcontractor. The Contractor shall pay interest of one and one-half (1-1/2%) percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time pursuant to this provision to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of one hundred ($100.00) dollars or more shall be ten ($10.00) dollars. For an unpaid balance of less than one hundred ($100.00) dollars, the Contractor shall pay the actual penalty due under this provision 10 to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. 10. Exhibits The following maps are attached: A. Eagan Central Commons Special Area B. Project Area and surroundings C. Central Common Special Area Land Uses FLICKER CR ASHBURY ROADKOLSTAD LN FARNUM TOW N CENTRE DR IV E MARICE DR FEDERAL DRIVEDREXEL CTQUARRY CT.DENMARK AVEBLUE JAY CTPOPPLER LANEBOARDWALK TOWN CENTRE DRIVE BLACK H A W K RIDGE W A Y PROMENADE AVELOON LANECOUNTY ROAD NO.43 (LEXINGTON AVE.)HUMMINGBIRD LN TOWN CENTRE DR BLACKHAWK LAKE CTC.S.A.H. NO. 31 (PILOT KNOB ROAD)CTCRESTRIDGE DRWAY DENMARK TRAIL KITTIWAKE CIRMAR IC E C T ASHBURY CT LETENDRE ST EAGANDALE P LACEINTERSTATE HWY. NO. 35EDUCKWOOD TRWIDGEON WAYTOWERVIEW ROAD WIDGEON WAYTOWERVIEW ROAD NORTH JURDY CTBLACK HAWK COVEB L A CKHAWK PTLEMIEUX CIR DENMA R K C T DRI V E NORWEST D UCKWOOD TRAIL LAKEVIEW CURVEST. CHARLES PLACEDENM AR K A V E CRESTRIDGE LANE CENTRAL PARKWAY ASHBURY PLACEM APLE STREET BLUE JAY WAYALDEN POND LANEVINCE TR CENTER COURTWESCOTT CIRLANEBLACKHAW K LAKE DRKRESTWOOD LNWOODTHRUSH CTCOACHMAN ROADSHERMAN COURTDREXEL CTSURREY HEIGHT S DRIVE DUCKWOOD DR BLACKHAWK LAKE DRJURDY ROAD VIOLET LANE NORTHWOOD PKWY PARK PL EAGANDALE BLVDN O R T HWOOD CIRPINE RIDGE DRIVEC.S.A.H. NO. 31 (PILOT KNOB ROAD)C.S.A.H. NO.26 (LONE OAK ROAD) HUNT DRIVE COACHMAN ROADFEDERAL DRIVEDUC K W O O D D R MOURNING DOVE CTB A LD EAGLE CT ENGLERT RDLAKEVIEW TRAI LWILL B ROOD CT.CO A CHMAN ROADDENMARK AVEPACIFIC AVE FEDERAL DRIVEHI GH-SITE DRIVE CO. RD. NO. 43 (LEXINGTON AVE.)B L UE HERON CTBOARDWALK COUNTY ROAD NO. 28 (YANKEE DOODLE ROAD)MERGANSER CTWOODLARK LANETANANGER CT QUARRY S JURDY CTFOUR OAKS RD C.S.A.H. NO. 31 (PILOT KNOB ROAD)DU C K WOOD DREGAN AVENUEFEDERAL DRIVEDUCKWOOD DRIVE MCCARTHY ROAD BRAUN CT LAKE DRCO A CHMAN ROADPINECREST CTGOLFVIEW DRASPEN COURTQUARRY RD COUNTY ROAD NO.28 (YANKEE DOODLE ROAD) W IDG EON WAYRED CEDAR ROAD TI MBERSHORE LANETOWN CENTRE DRIVECOACHMAN ROADBLACKHAWK RIDGE CT BLUE JAY WAYDENMARK AVEWASHI NGTON DR IVESHIELDS DR.JURDY ROADKOLSTAD ROADC.S.A.H. NO.26 (LONE OAK RD.)CROSSROAD CT.DENMARK AVESKYL IN E CHERRYWOOD CT81ST ST W CENTURY POINT BLACK H AWK HILLS RD CRESTRIDGE CTWIDGE ON WAYMCCARTHY RD ASHBU R Y PLLAKEVIEW CURVE CANARY WAYDENMARK CTDENMARK AVECARDINAL FALCON WAY GEMINI RD BALTIC AVEO'LEARY LANECLUBVIEW DR OAK STREET SPOONBILL CIRKINGLET CTCity Water Treatment/Maintenance FacilityCity Water Treatment/Maintenance FacilityDelta (former) Unisys Central Park Commons Quarry Park Quarry Development Central Park Community Centergas line easement gas line easement Hyvee Hobby Lobby Fairview Clinic Sierra Trading Total WineAldi Residence Inn Eagan Promenade Commercial Area Town Centre Commercial Area Eagan Transit Station Copyright nearmap 2015 Subject Properties Special Area Boundary Former Delta and Unisys Property (Central Commons Special Area) ´ 0 1,200600Feet FARNUM MARICE DR QUARRY CT.LOON LANECTLETENDRE ST TOWERVIEW ROAD TOWERVIEW ROAD NORTH JURDY CTDRI V E NORWEST CENTRAL PARKWAYALDEN POND LANELANECOACHMAN ROADSHERMAN COURTJURDY ROAD C.S.A.H. NO. 31 (PILOT KNOB ROAD)COACHMAN ROADFEDERAL DRIVEH IGH-SITE DRIVE COUNTY ROAD NO. 28 (YANKEE DOODLE ROAD) QUARRY S JURDY CTC.S.A.H. NO. 31 (PILOT KNOB ROAD)QUARRY RD RED CEDAR ROAD COACHMAN ROADDelta (former) Unisys Central Park Commons Quarry Park Quarry Development Central Park Community Centergas line easement gas line easement Hyvee Hobby Lobby Fairview Clinic Sierra Trading Post Total WineAldi Residence Inn Quarry Apts Applewood Coop City Tower Argosy Univ (former) Marshalls/ Home Goods Copyright nearmap 2015 Subject Properties Gas Line Easement Special Area Boundary Former Delta, Argosy and Unisys Properties (Central Park Area) ´0 500250Feet C.S.A.H. NO. 31 (PILOT KNOB ROAD)FLICKER CR ASHBURY ROADKOLSTAD LN FARNUM TOW N CENTRE D R IV E MARICE DR FEDERAL DRIVEDREXEL CTBURN SI D E A V E N U E QUARRY CT.BLUE JAY CTPOPPLER LANEBOARDWALK TOWN CENTRE DRIVE BLACK H A W K RIDGE W A YSTATE TRUNK HWY. NO. 13PROMENADE AVELOON LANECOUNTY ROAD NO.43 (LEXINGTON AVE.)HUMMINGBIRD LN DONALD COURT TOWN CENTRE DR BLACKHAWK LAKE CTC.S.A.H. NO. 31 (PILOT KNOB ROAD)CTCRESTRIDGE DRWAYKITTIWAKE CIRMA RI C E C T ASHBURY CT LETENDRE ST EAGANDALE P LACEINTERSTATE HWY. NO. 35EDUCKWOOD TRWIDGEON WAYTOWERVIEW ROAD BIRCHPOND RDWIDGEON WAYTOWERVIEW ROAD NORTH JURDY CTBLACK HAWK COVEB L A CKHAWK PTLEMIEUX CIR RAINIER LANE DENMA R K C T DRI V E NORWEST D UCKWOOD TRAIL LAKEVIEW CURVEST. CHARLES PLACEDENM AR K A V E CRESTRIDGE LANE CENTRAL PARKWAY ASHBURY PLACEM APLE STREET BLUE JAY WAYALDEN POND LANEVINCE TR CENTER COURTLANEBLACKHAWK LAKE DRKRESTWOOD LNWOODTHRUSH CTCOACHMAN ROADSHERMAN COURTSURREY HEIGHT S DRIVE DUCKWOOD DR BLACKHAWK LAKE DRJURDY ROAD VIOLET LANE NORTHWOOD PKWY PARK PL EAGANDALE BLVDN O R T HWOOD CIRPINE RIDGE DRIVESKYLINE TR C.S.A.H. NO. 31 (PILOT KNOB ROAD)C.S.A.H. NO.26 (LONE OAK ROAD) ASHBURY ROAD HUNT DRIVE COACHMAN ROADFEDERAL DRIVECO. ROAD NO. 43 LEXINGTON AVENUE SO.DUC K W O O D D R MOURNING DOVE CTB A LD EAGLE CT ENGLERT RDLAKEVIEW TRAI LWILL B ROOD CT.CO A CHMAN ROADDENMARK AVEPACIFIC AVE FEDERAL DRIVE SKYLINE DRIVEH IGH-SITE DRIVE CO. RD. NO. 43 (LEXINGTON AVE.)B L U E HERON CTBOARDWALK COUNTY ROAD NO. 28 (YANKEE DOODLE ROAD)MERGANSER CTWOODLARK LANETANANGER CT QUARRY S JURDY CTFOUR OAKS RD C.S.A.H. NO. 31 (PILOT KNOB ROAD)DU C K WOOD DREGAN AVENUEFEDERAL DRIVEDUCKWOOD DRIVE MCCARTHY ROAD BRAUN CT LAKE DRCO A CHMAN ROADPINECREST CTGOLFVIEW DRASPEN COURTQUARRY RD COUNTY ROAD NO.28 (YANKEE DOODLE ROAD) W IDG EON WAYRED CEDAR ROAD TI MBERSHORE LANETOWN CENTRE DRIVECOACHMAN ROADBLACKHAWK RIDGE CT BLUE JAY WAYDENMARK AVEWASHI NGTON DR IVESHIELDS DR.INLAND ROADRUSTIC HILLS DRJURDY ROADKOLSTAD ROADC.S.A.H. NO.26 (LONE OAK RD.)CROSSROAD CT.DENMARK AVEWE S T SERVICE ROAD SKYL IN E CHERRYWOOD CT81ST ST W CENTURY POINT BLACK H AWK HILLS RD CRESTRIDGE CTWIDG E ON WAYMCCARTHY RD ASHBUR Y PLLAKEVIEW CURVE CANARY WAYDENMARK CTDENMARK AVECARDINAL FALCON WAY GEMINI RD PATH BALTIC AVEO'LEARY LANECLUBVIEW DR OAK STREET SPOONBILL CIRKINGLET CTSubject Properties Special Area Boundary Land Use Guide Plan 2040 LD-Low Density MD-Medium Density HD-High Density O/S-Office/Service RC-Retail Commercial MO-Major Office BP-Business Park IND-Limited Industrial MU-Mixed Use P-Parks, Open Space, Recreation Former Delta and Unisys Property (Central Commons Land Use Map) ´0 1,000500Feet Agenda Information Memo August 8, 2022 Special City Council Meeting V. 2023 GENERAL FUND BUDGET PRESENTATION DIRECTION TO BE CONSIDERED: To provide direction to staff regarding the proposed 2023 General Fund budgets and preliminary tax levy FACTS: A 2023 General Fund budget was prepared a year ago as the second year of the City’s two-year operating budget process. The budget team—City Administrator Miller, Assistant City Administrator Alig, Finance Director Feldman, and Assistant Finance Director Foiles—has met with each of the departments as part of the process to bring the City Administrator’s recommended 2023 budget to its current state. The general narrative is laid out in a fashion similar to previous years. The budget team and department directors will be present at the meeting to respond to any questions the City Council may have about the proposed budget. The 2023 General Fund budget and tax levy are next scheduled to be considered at the regular City Council meeting on September 6. Staff will walk through the budget memo information with a slideshow presentation for the viewing public. ATTACHMENTS: V-1 2023 Budget Memo V-2 Slideshow Presentation 1 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR MILLER FINANCE DIRECTOR FELDMAN DATE: AUGUST 8, 2022 SUBJECT: PROPOSED 2023 GENERAL FUND OPERATING BUDGET AND PAYABLE 2023 PROPERTY TAX LEVY INTRODUCTION The 2023 Budget is the second year of the City’s 2022-2023 Budget process. The budget represents a strong effort by City staff to:  incorporate City Council direction,  continue to provide service levels the residents and stakeholders have come to expect,  reflect the changing economic shifts at the macro level. Changes in the 2023 Budget include:  Parks and Recreation staff reorganization to help better align services,  The rental housing program to maintain the City’s prominent housing stock,  Property assessment shifts and impacts. Specifically, in 2021, Eagan and our region saw significant market value growth in tax base. Now we are evaluation the impact of that shift, our uncertain national economy, inflation, rising interest rates, and how we are experiencing the impacts of these shifts. While the 2023 preliminary property assessment values climbed at 14% level, only 1.1% of that increase is due to new construction. Pandemic Recovery: The City continues its recovery from the COVID-19 pandemic. City staff are continuing to explore the best use of the relief funding provided by the federal government and will be seeking direction from City Council. Early in the pandemic, projections suggested considerable losses in property tax and development revenues. That was not the case as the Eagan economy remained strong during and coming out of the pandemic. 2 General Fund Status: The City’s General Fund remains strong and as such, City staff are exploring ways to use the fund balance in the General Fund as a means to pay for capital expenditures and maintain the 6% tax levy increase for 2023 as proposed in December of 2021. Overall, there are minimal staffing changes proposed in the departments supported primarily by the general fund and thus the general levy. Rental Licensing Program: The 2023 budget includes the addition of two full-time positions to support the proposed implementation of a new rental licensing program. As part of the rental licensing program, these positions will be partially or fully supported through the program fees by year-three of operations. Further action on the rental licensing program will be sought in the Fall of 2022 and further budget refinement will best reflect the action toward final adoption in December. Race Equity and Inclusion: Department directors and staff were asked to prepare their respective budgets with an eye toward more equitable services and programs. The 2022 budget included funding for a racial equity and inclusion assessment with the addition of a staff person in 2023 to advance racial equity and inclusion (REI) efforts not only within the City organization but the entire community of Eagan. This effort was initiated by the City Council as a key initiative, stemming from its discussion at the April 2021 Council/Staff retreat. The current REI assessment will be completed mid-2023. Without knowing the recommendations of that assessment, staff is proposing the REI funds included in the 2023 budget be allocated under professional services rather than called out specifically as a new staff position. Doing so will provide flexibility to be responsive to the recommendations of the assessment. MEETING PURPOSE The City is required by State law to certify a preliminary payable 2023 property tax levy to the County Treasurer-Auditor on or before September 30, 2022. The primary purpose of the August 8 Special City Council meeting is to review the preliminary 2023 General Fund Budget and 2023 property tax levy, begin the public engagement process, and solicit City Council feedback so that adjustments can be made in time for certification at the September 6 regular Council meeting. As the Council is aware, the preliminary levy can be reduced for the final certification in December; however, it cannot be increased. If necessary, the Council could continue the budget discussion to the September 13 Special City Council meeting and/or refer to the Council’s Finance Committee for further consideration. In that case, the Council could certify the preliminary levy at its September 20 regular meeting. 3 BUDGET ADOPTION PROCESS The 2023 operating budget is the second year of the two-year budget cycle. Department directors reviewed their planned budget figures in April 2022 and submitted any major revisions in June. Formal action on the levy and preliminary 2023 General Fund budget is scheduled for the regular meeting on September 6, but as noted, could be delayed until the regular meeting on September 20. The Truth-in-Taxation hearing is tentatively scheduled for Tuesday, December 6. Should the Council wish to discuss further, final budget and levy approval could occur at the regular Council meeting on December 20. EXECUTIVE SUMMARY  General Fund proposed budget increase: o 2023: 4.4%  Tax levy proposed increase: o 2023: 6.0%  Total tax capacity increased 12.9% (New construction was 1.1% of the increase)  Market value of property in Eagan increased 14.1%. New construction accounted for 1.1% of the increase.  Average-value home increased in value 14.0% to $393,843  Increase in taxes on average value home: o 2023: 6.9%  2023 proposed staff additions, which account for $156,000, or 7.7% of the total $2,032,700 budget increase: o Clerical IV (Part time - 0.5 FTE planned to be hired in July of 2023) o Senior Property Maintenance Technician (July 2023 hire date) o Recreation Programmers  The addition of two Recreation Programmers is the result of a planned reorganization of the department. The department will eliminate an existing Recreation Supervisor position as well as a part time Recreation Specialist position.  2023 includes an 8.0% increase in health insurance costs. 4 General Fund Budget The proposed 2023 General Fund budget is $48,392,800, an increase of $2,032,700, or 4.4%, over the 2022 expenditure budget. While proposed staff additions comprise a large portion of the budget increase, it should be noted that even with no changes to staff or programs, the 2023 General Fund budget would increase by 4.1%. Significant changes in General Fund revenues and expenditures are further detailed below. 5 Revenues The 2023 revenue estimates are based on a continuation of the City’s established practice staying on the conservative side. Significant revenue changes for 2023 are noted below:  Intergovernmental revenues are estimated to be down $658,900. This decrease in revenue is a result of the SAFER Federal Grant expiring in 2022.  The use of Fund Balance is programmed to increase $300,000 in 2023 in accordance with the phased-in tax levy approach for the SAFER personnel. General Fund Revenues 2022 2023 $ % Property Taxes 36,265,400 38,677,600 2,412,200 6.7% Licenses and Permits 1,729,600 1,803,400 73,800 4.3% Inter-gov't Rev. 2,058,200 1,399,300 (658,900) -32.0% Charges for Services 2,476,400 2,515,700 39,300 1.6% Program and Other Revenues 959,600 953,000 (6,600) -0.7% Fund Balance 300,000 600,000 300,000 100.0% Transfers In 2,570,900 2,443,800 (127,100) -4.9% 46,360,100 48,392,800 2,032,700 4.4% ∆ 6 Expenditures The proposed budget increases are largely attributed to existing and newly proposed staff (88% of the increase in 2023). The rationale for the new positions is addressed later in this memo: Significant non-personnel changes - 2023 Budget:  Parts and supplies are budgeted to increase $65,900 as a result of the inflationary impacts of road treatment supplies ($58,000 increase, or 27.7%).  Services and other charges are programmed to increase $142,700 in 2023. This increase is primarily due to $150,000 in professional services to support the City’s ongoing racial, equity, and inclusion efforts. In addition, the 2023 budget reflects a $43,400 increase in IT maintenance costs for city-wide applications as well as an increase of $16,700 for the continual support of the Dakota County Drug Task Force. These increases were partially offset by the forecasted costs for the Dakota Communication Center decreasing $172,600, or 11.3% in 2023 General Fund Expenditures 2022 2023 $ % Personal Services 35,908,000$ 37,693,300$ 1,785,300$ 5.0% Parts & Supplies 2,176,500 2,242,400 65,900 3.0% Services & Other Charges 7,808,200 7,950,900 142,700 1.8% Capital Outlay 367,400 316,400 (51,000) -13.9% Contingency 100,000 189,800 89,800 89.8% 46,360,100$ 48,392,800$ 2,032,700$ 4.4% ∆ 7 2022 2023 Approved Proposed Existing Personnel Budget Budget $ % Regular Employees Salaries/wages/overtime 25,196,600$ 26,240,800$ 1,044,200$ 4.1% Temporary/Seasonal 1,300,500 1,223,200 (77,300) -5.9% Contractual Overtime 109,800 109,800 - 0.0% PERA 3,108,100 3,373,200 265,100 8.5% FICA 1,196,300 1,238,800 42,500 3.6% Health/Life/LTD insurance 3,841,300 4,100,600 259,300 6.8% Workers' compensation 1,129,400 1,174,900 45,500 4.0% Fire Relief Association (pension) - 50,000 50,000 N/A Unemployment compensation 26,000 26,000 - 0.0% 35,908,000 37,537,300 1,629,300 4.5% 2023 Proposed Adjustments FTE Community Development Clerical IV (Part Time) 0.5 - 25,000 25,000 ** Senior Property Maintenance Technician 1.0 - 60,300 60,300 ** Recreation Rec. Supervisor (1.0) - (138,400) (138,400) Rec. Programmer 2.0 - 209,100 209,100 2.5 - 156,000 156,000 Total Personnel 35,908,000$ 37,693,300$ 1,785,300$ 5.0% ** Above  2023 proposed budget figures reflect an anticipated third quarter hire date General Fund Personnel Summary 2022-2023 Δ 8 Proposed New Positions 2023 – General Fund Community Development Proposed Position: Clerical IV (0.5 FTE)  This part-time position has an anticipated hire date of July 2023, which is reflected in the budgeted personnel costs. Also, the position will be partially funded through rental licensing revenues.  The position will help with the administration of the City’s newly implemented rental housing licensing program. Proposed Position: Senior Property Management Technician (1.0 FTE)  This full-time position has an anticipated hire date of July 2023 and is reflected in the budgeted personnel costs. Also, the position will be partially funded through rental licensing revenues.  The position will help with the administration of the City’s newly implemented rental housing licensing program. Recreation Department Proposed Positions: Recreation Programmer (Net - 1.0 FTE)  The Recreation Programmer position is the result of the following planned reorganization of the Recreation Department: o Retirement of Recreation Supervisor, replaced by a proposed Recreation Programmer at a lesser cost o Hire additional Recreation Programmer and eliminate a part-time seasonal Recreation Specialist position  The Recreation Programmer hired in the Fall of 2022 will maintain the strong service levels for the Community Development Block Grant (CDBG) and community outreach programs currently provided by the Recreation Supervisor  The Recreation Programmer programmed to be hired in 2023 will manage existing special events (Market Fest, Food Truck Festival etc.) and explore other programming opportunities. 9 General Fund Balance The projected 2022 year-ended General Fund balance of $27,400,000 represents 56.7% of the proposed 2023 budget. This is 11.7%, or $5.6 million, above the upper end of the Council’s target range of 40% to 45% and $8.0 million above the lower end of the target range of the following years budgeted expenditures. Included in the projected fund balance for 2022 is the budgeted use of $300,000 of fund balance. $50,000 was designated to pay for a professional external race, equity, and inclusion study and an additional $250,000 is programmed to essentially pay for a portion of the SAFER Grant firefighters as part of the planned use of fund balance over the next three years. 2022 is the 3rd and final year of the SAFER Grant, and a $650,000 decline is programmed to occur in funding from 2021. As a result, we are planning to use additional fund balance in 2023 and 2024. The total is $1,150,000 for all three years and is as follows: 2022 - $250,000 2023 - $600,000 2024 - $300,000 The use of additional fund balance is being planned for capital needs. More discussion on this matter will occur at a future workshop as City staff continue to plan for the long- term financial sustainability for the Equipment Revolving, Facilities Renewal and Replacement and the Fire Apparatus Funds. 10 Market Value and Tax Capacity Tax capacity has increased an average of 8.2% annually over the past 5 years. Preliminary numbers from Dakota County indicate a 15.2% increase in net tax capacity for 2023. Property values have now regained all that was lost in the Great Recession a decade ago, and then some. Similarly, market value has increased an average rate of 8.4% since 2019. The preliminary 2023 value of $12.0 billion is up 14.1% from 2022. Final Proposed Payable 2022 Payable 2023 Dollars % Taxable Market Value 10,531,942,976 12,017,751,764 1,485,808,788 14.1% Tax Capacity: Gross Tax Capacity 132,255,191 149,250,202 16,995,011 12.9% Fiscal Disparities Contribution (18,938,482) (18,732,942) 205,540 1.1% Tax Increment Value (4,535,843) (5,083,552) (547,709) -12.1% Net Local Tax Capacity 108,780,866 125,433,708 16,652,842 15.3% Taxable Market Value and Tax Capacity Change 11 Tax Capacity-Based Levy The tax capacity-based component of the City’s 2023 proposed levy for operations and debt service is $45,662,631, an increase of $2,594,708 or 6.0% over the 2022 levy of $43,067,923. The proposed tax capacity rate calculated at .33455 which is significantly lower than the 2022 rate of .36119. This reduction is the result of the net local levy increasing disproportionately to the taxable market value in Eagan. The fiscal disparities distribution and tax increment value amounts for the proposed 2023 budget are estimates. Final amounts are not available until later in August, so the tax capacity rate calculation is only an estimate. Final Proposed 2022 2023 Amount % Operating Levy 41,158,960$ 43,695,840$ 2,536,880$ Debt Service Levy 1,908,963 1,966,791 57,828 Total Tax Capacity Levy 43,067,923 45,662,631 2,594,708 6.0% Fiscal Disparities Distribution (3,778,030) (3,700,000) 78,030 -2.1% Net Local Levy 39,289,893$ 41,962,631$ 2,672,738$ 6.8% Calculation: Net local levy 39,289,893 41,962,631 Local tax cap 108,780,866 125,433,708 Tax capacity rate: 0.36119 0.33455 -7.4% Tax Capacity Levy & Tax Capacity Rates Difference 12 Total Levy and Levy Allocation In total, the proposed 2023 tax levy is projected to increase 6.0% from 2022. Below is a 10-year history of the annual levy percentage changes: In 2023, the city-wide levy is up 6.0% over 2022. The General Fund budget and tax levy are the main driver in the 6.0% increase as well as the Equipment Revolving Fund (ERF) tax levy as part of the planned use of fund balance. The planned reduction of the Major Street bridges levy is offset from the increase in the 2018A Debt service scheduled increase to replace that levy. A 2% inflationary rate is also set for the capital levies, including the General Facilities R&R and Parks Systems Development Funds. The other debt service levies are according to plan and debt service requirements. 13 Property Tax Impact In general, if the tax levy increases, the total property tax bill the City taxpayers pay will increase at the same rate if all things stay constant from one year to the next. However, the property tax impact most always varies from individual property to individual property due to many factors. If the property is classified as a commercial property versus a residential property, the class tax rate may be different. In addition, class rates may also vary based on if the property valued at a certain threshold for the residential property type. Property valuations also can vary considerably based on the County property assessments from one year to the next. Again, many factors impact an individual properties tax bill. New development is one of the factors that can reduce the overall impact on the existing tax base, even if the tax levy increases. For taxes payable 2023, Dakota County is reporting the preliminary tax capacity of all property in Eagan to increase 14.1%, but 1.1% of the increase was due to new construction. Some of the increase is shared with other communities by way of fiscal disparities, but the growth will reduce the tax impact for existing property owners if all things are the same. The value of the average Eagan house increased by 14.0% for 2023 taxes, from $345,478 to $393,843. The City portion of taxes on the average value home will increase by $85 (6.9%), from $1,226 to $1,311. Historical data of the City portion of property taxes on Eagan households as well as the historical change in the average value of those households is provided in the below tables. Final Proposed 2022 2023 $ change % General Fund 36,265,400$ 38,677,600$ 2,412,200$ 6.7% Special Revenue - Parking Ramp 54,000 56,000 2,000 3.7% General Facilities R & R 250,000 255,000 5,000 2.0% Equipment Revolving Fund 1,174,000 1,356,000 182,000 15.5% Major Streets Fund - A 2,061,000 2,102,000 41,000 2.0% Major Streets Fund - B (Overpasses) 590,000 474,020 (115,980) -19.7% Fire Apparatus - Debt 139,440 140,280 840 0.6% - Revolving 220,560 219,720 (840) -0.4% Park Systems Development & R & R 528,000 539,000 11,000 2.1% DataBank Abatement 16,000 16,500 500 3.1% Debt Service - 2016 Bonds 547,809 546,653 (1,156) -0.2% Debt Service - 2018 Bonds 1,221,714 1,279,858 58,144 4.8% Grand Total Levy 43,067,923$ 45,662,631$ 2,594,708$ 6.0% Allocation of Property Tax Levy 14 Projected 2019 2020 2021 2022 2023 Tax Capacity Rate 0.35227 0.35262 0.36333 0.36119 0.33455 Market Value Rate 0.0001235 0.0001359 - - - Market Value 200,000$ 661 665 657 653 605 300,000 1,058 1,063 1,053 1,057 969 345,478 Pay 2022 Average Eagan House Mkt Value 1,226 393,843 Pay 2023 Average Eagan House Mkt Value 1,311 400,000 1,454 1,460 1,449 1,440 1,334 500,000 1,823 1,831 1,817 1,806 1,672 600,000 2,276 2,285 2,271 2,257 2,091 700,000 2,728 2,740 2,725 2,709 2,509 Eagan Property Tax History City Portion Projected 2019 2020 2021 2022 2023 Average home value 298,846 313,077 324,634 345,478 393,843 % increase 7.8% 4.8% 3.7% 6.4% 14.0% City portion of property taxes 1,053 1,115 1,150 1,226 1,311 % increase 5.1% 5.9% 3.1% 6.6% 6.9% City Portion of Taxes on Average Value Home 15 Proposed Next Steps  Staff incorporates City Council direction from this meeting into the proposed budget and levy.  City Council approves the preliminary levy at the regular meeting on September 6 (or the regular meeting on September 20).  If the City Council feels further consideration is necessary, the budget could be further discussed at the September 13 Special meeting, as a precursor to approval at the meeting on September 20. Alternatively, the Council could refer the budget to the Finance Committee for a meeting in late-August or early- September.  The preliminary levy must be certified to Dakota County by September 30  The annual Truth-in-Taxation public hearing will be held at the regular City Council meeting on December 6 with the opportunity to adopt the 2023 budget, and the 2023 tax levy. If not adopted at the December 6 meeting, the City Council will be asked to approve the budgets and tax levy at the December 20 City Council meeting. Public Policy Issues  Is the City Council supportive of the proposed 4.4% increase in the 2023 Budget and the 6.0% increase in the 2023 Property tax levy adjustment?  Recognizing that the current City Council does not bind future City Council decisions, is the continued plan for the phased-in tax levy approach and the use of fund balance in the General Fund acceptable? Dianne Miller Josh Feldman City Administrator Finance Director 16 2022 2023 Budget Budget $% General Property Taxes 36,265,400 38,677,600 2,412,200 6.7% Licenses 296,000 396,000 100,000 33.8% Permits 1,433,600 1,407,400 (26,200) -1.8% Intergovernmental Rev 2,058,200 1,399,300 (658,900) -32.0% Charges for Services 1,631,300 1,633,400 2,100 0.1% Recreation Charges 845,100 882,300 37,200 4.4% Fines & Forfeits 259,300 264,300 5,000 1.9% Other Revenues 339,900 354,000 14,100 4.1% Program Revenues 360,400 334,700 (25,700) -7.1% Fund Balance 300,000 600,000 300,000 100.0% Transfers 2,570,900 2,443,800 (127,100) -4.9% TOTAL GENERAL FUND 46,360,100$ 48,392,800$ 2,032,700 4.4% ∆ 2022 vs. 2023 General Fund 2023 Budget COMPARATIVE SUMMARY OF REVENUES 17 Acct2019 2020 2021 2022 2023No. DESCRIPTION ActualBudgetBudgetBudgetBudgetTAXES:4020AD VALOREM TAXES - CURRENT27,133,506$   30,044,734$   31,530,900$   32,815,600$      35,131,200$      1,284,700       4.1% 2,315,600       7.1%4021AD VALOREM TAXES - DELINQUENT93,687            168,023           ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4030FISCAL DISPARITIES2,619,353       2,682,852       3,326,600       3,449,800          3,546,400          123,200          3.7% 96,600            2.8%4031PENALTIES AND INTEREST7,201              16,649             ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4032FORFEITED TAX SALES‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A TOTAL29,853,747$   32,912,258$   34,857,500$   36,265,400$      38,677,600$      1,407,900       4.0% 2,412,200       6.7%UNCOLLECTIBLE TAXES‐                   ‐                  (1,000,000)       ‐                      ‐                     1,000,000        ‐100.0%‐                  N/ALICENSES:4055LIQUOR286,638$        155,469$        232,000$        250,000$           250,000$           18,000            7.8%‐                  0.0%4056BEER‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4057TOBACCO9,000              9,383              10,000            9,000                 9,000                 (1,000)              ‐10.0%‐                  0.0%4058TREE MTN CONTRACTOR 1,650              1,750              1,400              1,500                 1,500                 100                 7.1%‐                  0.0%4059GARB/RUBBISH HAULING13,089            6,720              8,000              8,000                 8,000                  ‐                  0.0%‐                  0.0%4060KENNEL‐                  50                   100                 100                    100                     ‐                  0.0%‐                  0.0%4061DOG26,801            9,483              22,000            18,700               18,700               (3,300)              ‐15.0%‐                  0.0%4063PET SHOP LICENSE150                 100                 200                 200                    200                     ‐                  0.0%‐                  0.0%4064MASSAGE THERAPIST8,925              7,500              8,500              8,500                 8,500                  ‐                  0.0%‐                  0.0%4064RENTAL‐                   ‐                   ‐                   ‐                     100,000              ‐                  N/A 100,000          N/A TOTAL346,253$        190,455$        282,200$        296,000$           396,000$           13,800            4.9% 100,000          33.8%PERMITS:4085BUILDING1,405,911$     1,292,093$     520,000$        994,000$           976,300$           474,000          91.2% (17,700)            ‐1.8%4087PLUMBING200,850          203,689          55,000            171,300             165,000             116,300          211.5% (6,300)              ‐3.7%4088MECHANICAL259,339          189,172          75,000            152,500             150,000             77,500            103.3% (2,500)              ‐1.6%4089SIGN29,149            31,631            20,000            28,000               28,000               8,000              40.0%‐                  0.0%4091WELL/PRIVATE SEPTIC‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4093DEMOLITION/MOVING‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4094EXCAVATING1,600              2,700              2,500              2,500                 2,500                  ‐                  0.0%‐                  0.0%4095CONDITIONAL/SPECIAL USE4,303              5,307              5,000              4,800                 4,800                 (200)                 ‐4.0%‐                  0.0%4096FIRE SUPPRESSION PERMITS45,460            22,337            20,000            25,000               25,000               5,000              25.0%‐                  0.0%4097FIREWORKS PERMITS1,472              1,368              1,500              1,500                 1,500                  ‐                  0.0%‐                  0.0%4098SPECIAL EVENT PERMITS1,125              210                 500                 800                    1,000                 300                 60.0% 200                 25.0%4100UTILITY72,820            86,732            23,200            50,000               50,000               26,800            115.5%‐                  0.0%4102PUBLIC ROW CONST220                 2,910              800                 800                    800                     ‐                  0.0%‐                  0.0%4116CHICKEN PERMIT675                 825                 400                 500                    600                    100                 25.0% 100                 20.0%4118BEEKEEPING PERMIT3,050               ‐                   ‐                  1,500                 1,500                 1,500              N/A‐                  0.0%4118BEEKEEPING PERMIT315                 395                 300                 400                    400                    100                 33.3%‐                  0.0%4120OTHER661                 130                 1,000               ‐                      ‐                     (1,000)              ‐100.0%‐                  N/A TOTAL2,026,950$     1,839,499$     725,200$        1,433,600$        1,407,400$        708,400          97.7% (26,200)            ‐1.8%GENERAL FUNDREVENUES BY LINE ITEM ∆2021 to 2022 % ∆2022 to 2023 % 18 Acct2019 2020 2021 2022 2023No. DESCRIPTION ActualActualBudgetBudgetBudgetINTER-GOV'T REV:4135FEDERAL GRANTS89,579$          1,446,114$     1,437,500$     724,000$           73,000$             (713,500)          ‐49.6% (651,000)          ‐89.9%4140STATE GRANTS85,237            97,182            40,000            35,400               8,000                 (4,600)              ‐11.5% (27,400)            ‐77.4%4151LOCAL PERFORMANCE AID9,569              9,692              9,400              9,500                 9,500                 100                 1.1%‐                  0.0%4153MVHC203                 208                  ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4155MSA - MAINTENANCE73,200            73,995            72,000            79,000               84,000               7,000              9.7% 5,000              6.3%4158POLICE TOWN AID652,617          674,962          590,000          627,000             627,000             37,000            6.3%‐                  0.0%4159POLICE TRAINING AID75,557            66,805            65,000            57,500               57,500               (7,500)              ‐11.5%‐                  0.0%4160STATE PERA AID33,406            16,849            33,100            38,100               38,000               5,000              15.1% (100)                 ‐0.3%4161FIRE STATE AID444,557          473,465          408,000          487,700             502,300             79,700            19.5% 14,600            3.0%4175COUNTY GRANTS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4177OTHER GRANTS AND AIDS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A TOTAL1,463,925       2,859,272       2,655,000       2,058,200          1,399,300          (596,800)          ‐22.5% (658,900)          ‐32.0%CHARGES FOR SERVICES:4205VARIANCE FEES3,900$            1,900$            2,000$            2,000$               2,000$                ‐                  0.0%‐                  0.0%4206PLATTING FEES8,163              15,447            8,000              8,000                 8,000                  ‐                  0.0%‐                  0.0%4207REZONING FEES6,612              5,649              5,000              5,000                 5,000                  ‐                  0.0%‐                  0.0%4210RETURNED CHECK FEE1,900              1,040              1,300              1,500                 1,500                 200                 15.4%‐                  0.0%4212DOG IMPOUND/KENNEL FEE2,986              2,116              4,500              3,500                 3,500                 (1,000)              ‐22.2%‐                  0.0%4214BURGLAR ALARM FEES12,940            17,200            15,000            15,500               15,500               500                 3.3%‐                  0.0%4215REPEAT NUISANCE CALL FEE250                 (1,261)             200                 200                    200                     ‐                  0.0%‐                  0.0%4216DAYCARE INSPECTION FEES659                 559                 600                 700                    700                    100                 16.7%‐                  0.0%4220VACATION PROCEEDINGS1,404              2,800              2,800              2,400                 2,400                 (400)                 ‐14.3%‐                  0.0%4221PUBLIC SAFETY FEES‐                  1,425              100                 1,000                 1,000                 900                 900.0%‐                  0.0%4222PLAN CHECKS782,029          654,745          380,000          475,100             480,000             95,100            25.0% 4,900              1.0%4226DEV ESCROW REIMBURS126,811          124,572          100,000          100,000             100,000              ‐                  0.0%‐                  0.0%4227ENGINEERING SERVICES467,528          588,178          529,000          633,200             624,800             104,200          19.7% (8,400)              ‐1.3%4228ENG/FINANCIAL ADMINISTRATION6,573              3,200              6,200              7,400                 7,500                 1,200              19.4% 100                 1.4%4229BUSINESS ASSIST APPLICATION FEE‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4230PRINT MATERIAL/OTHER FEES3,303              2,175              4,500              3,000                 3,500                 (1,500)              ‐33.3% 500                 16.7%4231RESEARCH OF CITY RECORDS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4233TOBACCO NON-COMPL. PENALTY‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4234CONTR SERVICES - SECURITY/EMS133,008          63,515            200,000          136,100             136,100             (63,900)            ‐32.0%‐                  0.0%4236POL SVCES TO SCHOOL DIST81,938            72,770            84,200            83,000               83,000               (1,200)              ‐1.4%‐                  0.0%4239INVESTIGATION FOR LICENSING17,650            17,100            20,000             ‐                      ‐                     (20,000)            ‐100.0%‐                  N/A4241ALCOHOL NON-COMPL. PENALTY1,000              3,500               ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4242MAINT EQUIP & PERS CHG22,783            9,102              10,000            10,000               10,000                ‐                  0.0%‐                  0.0%4245PERMIT SURCHARGE1,504              1,178              1,300              1,500                 1,500                 200                 15.4%‐                  0.0%4246ADMN FEE ON SAC16,152            249                 11,800            17,200               17,200               5,400              45.8%‐                  0.0%4247ROOM TAX ADMIN FEE58,558            29,952            28,000            45,000               50,000               17,000            60.7% 5,000              11.1%4260INVESTMENT MGMT FEE40,654            25,257            27,000            20,000               20,000               (7,000)              ‐25.9%‐                  0.0%47XXACCESSEAGAN FEES‐                  52,819            81,300            60,000               60,000               (21,300)            ‐26.2%‐                  0.0%OTHER‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A TOTAL1,798,305       1,695,187       1,522,800       1,631,300          1,633,400          108,500          7.1% 2,100              0.1%GENERAL FUNDREVENUES BY LINE ITEM ∆2021 to 2022 %% ∆2022 to 2023 19 Acct2019 2020 2021 2022 2023No. DESCRIPTION ActualActualBudgetBudgetBudget4310-13RECREATION PROGRAM FEES:3001GENERAL/ADMIN RECREATION‐$                 ‐$                 ‐$                 ‐$                    ‐$                    ‐                  N/A‐                  N/A3027HOLZ FARM3,893              2,988              5,800              19,400               21,900               13,600            234.5% 2,500              12.9%3029SAFETY CAMP2,205               ‐                  3,000              3,200                 3,400                 200                 6.7% 200                 6.3%3032-5TENNIS6,236              4,568              12,100            25,000               25,200               12,900            106.6% 200                 0.8%3037-8GOLF‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3041-3VOLLEYBALL17,039            7,829              18,700            18,300               18,300               (400)                 ‐2.1%‐                  0.0%3044-6BROOMBALL2,251               ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3047T-BALL12,364            5,470              10,600            20,800               20,800               10,200            96.2%‐                  0.0%3048ADULT SOFTBALL-MEN71,968            31,743            68,600            86,500               86,500               17,900            26.1%‐                  0.0%3049ADULT SOFTBALL-WOMEN1,512               ‐                  2,100               ‐                      ‐                     (2,100)              ‐100.0%‐                  N/A3050ADULT SOFTBALL-CO-REC11,818            9,928              15,200             ‐                      ‐                     (15,200)            ‐100.0%‐                  N/A3052FOOTBALL2,825              2,828              1,900              3,100                 3,100                 1,200              63.2%‐                  0.0%3054-6HOCKEY/BOOT HOCKEY‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3057PRESCHOOL PROGRAMS132,994          74,187            144,000          141,800             148,000             (2,200)              ‐1.5% 6,200              4.4%3058,75TEENS2,574              267                 11,400            8,800                 9,600                 (2,600)              ‐22.8% 800                 9.1%3059SUMMER IN THE PARK37,026            43,876            44,500            58,100               65,300               13,600            30.6% 7,200              12.4%3060PUPPET WAGON2,500              2,500              4,000              4,300                 5,100                 300                 7.5% 800                 18.6%3061MARKETFEST32,389            35,680            29,100            38,400               37,700               9,300              32.0% (700)                 ‐1.8%3062SCHOOL'S OUT EVENTS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3063SEASONAL SPECIAL EVENTS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3064RECREATION OUTREACH‐                  1,450              5,000              1,500                 1,500                 (3,500)              ‐70.0%‐                  0.0%3065SPECIAL EVENTS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3066DANCE‐                   ‐                  2,000               ‐                      ‐                     (2,000)              ‐100.0%‐                  N/A3067ADAPTIVE/INCLUSION‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3069NATURE PROGRAMS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3071,74TUBING HILLS4,514              11,613            8,300              10,000               10,000               1,700              20.5%‐                  0.0%3076BASKETBALL16,582            6,500              18,800             ‐                      ‐                     (18,800)            ‐100.0%‐                  N/A3077WIFFLEBALL7,621              3,484              9,100              5,600                 5,600                 (3,500)              ‐38.5%‐                  0.0%3078SENIOR CITIZENS18,418            7,633              33,700            48,800               53,300               15,100            44.8% 4,500              9.2%3079FUN RUNS/WALKS33,029            12,888            43,500            43,500               45,300                ‐                  0.0% 1,800              4.1%3080CONCESSIONS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3081ARTS COUNCIL157,474          61,160            126,500          198,200             206,000             71,700            56.7% 7,800              3.9%3082SPORTS & CREATIVE CAMPS13,310            6,392              14,200            5,300                 7,100                 (8,900)              ‐62.7% 1,800              34.0%3085FAMILY ACTIVITES‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3086NEW PROGRAMS2,765              3,234              2,400              2,300                 2,300                 (100)                 ‐4.2%‐                  0.0%3088PARK FACILITY RENTALS154                  ‐                  30,000             ‐                      ‐                     (30,000)            ‐100.0%‐                  N/A3089EQUIPMENT RENTALS238                 461                  ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3090OFF-LEASH DOG AREA12,704            5,946               ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A3092CDGB SENIOR PROGRAMS71,382            25,795            69,100            87,200               91,300               18,100            26.2% 4,100              4.7%3097MRAC COUMMUNITY ARTS GRANT 398                 1,725              18,400             ‐                      ‐                     (18,400)            ‐100.0%‐                  N/A3201TREE SALES‐                  1,200              15,000            15,000               15,000                ‐                  0.0%‐                  0.0%OTHER REVENUE‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A TOTAL678,743          371,345          767,000          845,100             882,300             78,100            10.2% 37,200            4.4%GENERAL FUNDREVENUES BY LINE ITEM ∆2021 to 2022 % ∆2022 to 2023 % 20 Acct2019 2020 2021 2022 2023No. DESCRIPTION ActualActualBudgetBudgetBudgetFINES & FORFEITS:4410COURT FINES/FORFEITS242,494$        176,089$        187,000$        209,300$           209,300$           22,300            11.9%‐                  0.0%4411PROSECUTION COSTS/FINES69,155            45,726            45,000            50,000               55,000               5,000              11.1% 5,000              10.0%4421EVIDENCE FORFEITURES1,571               ‐                  1,200               ‐                      ‐                     (1,200)              ‐100.0%‐                  N/A TOTAL313,220          221,815          233,200          259,300             264,300             26,100            11.2% 5,000              1.9%MISC REVENUES:4610INTEREST ON INVESTMENTS413,892$        277,132$        100,000$        125,000$           125,000$           25,000            25.0%‐                  0.0%4611/12SPEC ASSMT-PRINCIPAL/INT8,160              5,288              5,000              5,000                 5,000                  ‐                  0.0%‐                  0.0%4615CHANGE IN FMV - INVESTMTS85,414            26,537             ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4620ANTENNA LEASES - HOLZ FARM42,987            45,600            48,900            51,800               54,900               2,900              5.9% 3,100              6.0%4622EQUIPMENT REENT‐                  10,371             ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4624ATHLETIC FIELD RENT62,100            28,595            64,100            84,000               93,000               19,900            31.0% 9,000              10.7%4625PARK SHELTER RENT40,951            24,959            75,000            42,000               42,000               (33,000)            ‐44.0%‐                  0.0%4628SWITCHING STATION RENT27,131            28,759            24,000            28,800               30,500               4,800              20.0% 1,700              5.9%4634ATHLETIC FIELD RENT-NON-RESIDENT‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4657SALE OF CITY PROPERTY2,674              1,671              1,600              1,600                 1,600                  ‐                  0.0%‐                  0.0%4660LAPEL PINS‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4661HISTORY BOOKS1,236              369                  ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4663CONTRIBUTION/DONATION19,394            19,484             ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4666HISTORY CARDS152                 47                    ‐                   ‐                      ‐                      ‐                  N/A‐                  N/A4691OTHER REVENUE51,053            35,342            20,100            1,700                 2,000                 (18,400)            ‐91.5% 300                 17.6% TOTAL755,144          504,154          338,700          339,900             354,000             1,200              0.4% 14,100            4.1%PROGRAM REVENUES:4810PROJ. ADMIN277,808$        192,157$        238,000$        284,700$           252,700$           46,700            19.6% (32,000)            ‐11.2%4821DRUG TASK FORCE REIMB28,520            32,069            25,000            35,700               37,000               10,700            42.8% 1,300              3.6%4822OTHER REIMBURSEMENTS22,633            3,740              10,900            10,000               10,000               (900)                 ‐8.3%‐                  0.0%4831CAPITAL CREDITS35,540            38,027            22,800            30,000               35,000               7,200              31.6% 5,000              16.7% TOTAL364,501          265,993          296,700          360,400             334,700             63,700            21.5% (25,700)            ‐7.1%FUND BALANCE‐$                 ‐$                1,523,700$     300,000$           600,000$           (1,223,700)       ‐80.3% 300,000          100.0%TRANSFERS:CABLE FRANCHISE FEES576,624          554,494          689,200          748,200             540,700             59,000            8.6% (207,500)          ‐27.7%CARES TRANSFER‐                  3,797,103        ‐                   ‐                      ‐                      ‐                  N/A‐                  N/AARPA TRANSFER‐                   ‐                   ‐                   ‐                      ‐                      ‐                  N/A‐                  N/AUTILITY TRANSFERS1,497,700       1,617,900       1,707,400       1,822,700          1,903,100          115,300          6.8% 80,400            4.4% TOTAL2,074,324       5,969,497       2,396,600       2,570,900          2,443,800          174,300          7.3% (127,100)          ‐4.9% GRAND TOTAL39,675,112$   46,829,475$   44,598,600$   46,360,100$      48,392,800$      1,761,500       3.9% 2,032,700       4.4% ∆2021 to 2022 %GENERAL FUNDREVENUES BY LINE ITEM ∆2022 to 2023 % 21 2021 2022 2023 Budget Budget $ % Budget $ %GENERAL GOVERNMENT01 Mayor & Council 172,400$ 166,600$ (5,800)$ -3.4% 175,800$ 9,200$ 5.5%02 Administration 689,400 781,700 92,300 13.4% 825,000 43,300 5.5%03 Information Technologies 2,579,400 2,885,500 306,100 11.9% 2,986,600 101,100 3.5%04 City Clerk 396,200 488,000 91,800 23.2% 403,700 (84,300) -17.3%05 Finance 1,044,100 1,043,200 (900) -0.1% 1,098,200 55,000 5.3%06 Legal 464,800 474,100 9,300 2.0% 486,800 12,700 2.7%07 Comm Dev--Planning 1,255,800 1,317,100 61,300 4.9% 1,510,100 193,000 14.7%08 Comm Dev--Inspections 1,708,100 1,701,800 (6,300) -0.4% 1,704,400 2,600 0.2%09 Communications 690,300 747,300 57,000 8.3% 788,200 40,900 5.5%10 Human Resources 738,000 706,900 (31,100) -4.2% 749,100 42,200 6.0%Gen Govt Total9,738,500 10,312,200 573,700 5.9% 10,727,900 415,700 4.0%PUBLIC SAFETY 11 Police 16,259,700 16,892,100 632,400 3.9% 17,467,500 575,400 3.4% 12 Fire 6,242,400 6,279,300 36,900 0.6% 6,713,600 434,300 6.9%Public Safety Total22,502,100 23,171,400 669,300 3.0% 24,181,100 1,009,700 4.4%PUBLIC WORKS 21 Public Works/Engineering 1,805,300 1,817,400 12,100 0.7% 1,858,300 40,900 2.3% 22 Streets & Highways 2,480,700 2,622,600 141,900 5.7% 2,734,800 112,200 4.3% 24 Central Svces. Maint. 1,043,900 1,060,400 16,500 1.6% 1,103,200 42,800 4.0%Public Works Total5,329,900 5,500,400 170,500 3.2% 5,696,300 195,900 3.6%PARKS & RECREATION30 Recreation 2,769,600 2,723,400 (46,200) -1.7% 2,920,400 197,000 7.2%31 Parks 2,589,300 2,705,600 116,300 4.5% 2,783,800 78,200 2.9%32 Tree Conservation 814,000 885,800 71,800 8.8% 910,200 24,400 2.8%Parks & Rec Total6,172,900 6,314,800 141,900 2.3% 6,614,400 299,600 4.7%GENL GOVT BLDG MAINT33 Government Buildings 839,300 961,300 122,000 14.5% 983,300 22,000 2.3% Subtotal44,582,700 46,260,100 1,677,400 3.8% 48,203,000 1,942,900 4.2%41 Contingency--Undesignated 150,800 100,000 (50,800) -33.7% 189,800 89,800 89.8%General Fund Total44,733,500$ 46,360,100$ 1,626,600$ 3.6% 48,392,800$ 2,032,700$ 4.4%DifferenceDifference2022-23Comparative Summary of ExpendituresGeneral Fund Budget 2023 Preliminary Levy and General Fund BudgetAugust 8, 2022 City Council Workshop • General Fund Budget: 4.4% increase• Tax Levy: 6.0% increase• Average value home: $393,843 increase of 14.0%• City taxes on average home: $1,311, up $85 (6.9%)Executive Summary • Senior Property Maintenance Technician*• Clerical IV (0.5 FTE)*• Recreation Programmer*** Positions would result from the implementation of the rental housing licensing program in 2023** Position is due to a department-wide re-organizationProposed Staff Additions Revenues Summary by Major Classifications($ in 000s)2022% of total2023% of totalΔProperty Taxes$ 36,26578.2%$ 38,67879.9%$ 2,413Licenses and Permits1,7303.7%1,8033.7%73Intergovernmental2,0584.5%1,3992.9%(659)Charges for Services2,4765.3%2,5165.2%40Programs and Other9602.1%9532.0%(7) Transfers In2,5715.6%2,4445.1%(127)Fund Balance3000.6%6001.2%300TOTAL $ 46,360100%$ 48,393100%$ 2,0334.4% Expenditure Summary by Major Classifications($ in 000s)2022 2023Δ% of total % of totalPersonal Services$ 35,90877.5%$ 37,69377.9%$ 1,785Parts and Supplies2,1774.7%2,2434.6%66Services & Other Charges7,80816.8%7,95116.4%143Capital Outlay3670.8%3160.7%(51)Contingency1000.2%1900.4%90 TOTAL $ 46,360100%$ 48,393100%$ 2,0334.4% General Fund Personnel Summary 20232023FTEBudget ImpactProposed AdditionsRecreation Programmer2.0209,100Clerical IV (Part Time) **0.525,000Senior Property Maintenance Tech. **1.060,300Proposed ReductionsRecreation Supervisor(1)(138,400)Total Personnel Impact2.5 156,000 • Phased-in tax levy approach for SAFER firefighters• 2023 - $600,000 proposed use of fund balance• 2024 - $300,000 last year of planned use of fund balance• September Finance Committee considerations• Capital funding (short-term cash proceeds)Fund Balance – General Fund Tax Capacity-based Levy & Net Local Levy($ in 000s)Final 2022 Prelim. 2023Δin $Δin %Total Tax Capacity-based Levy$ 43,068 $ 45,663 $ 2,595 6.0%FD Distribution (Est.) (3,778)(3,700)78(2.1)%Net Local Levy 39,290 41,963 2,673 6.8% Market Value and Tax Capacity($ in 000s)FinalPayable 2022PreliminaryPayable 2023 Change in $ Change in %Market Value $ 10,531,943 $ 12,017,752 $ 1,485,80914.1%Gross Tax Capacity 132,255 149,250 16,99512.9%Fiscal Disparity (18,938) (18,733) 205 1.1%TIF (4,536)(5,084)(548)(12.1)%Net Local Tax Capacity 108,781 125,433 16,65215.3% Tax Capacity Rates($ in 000s)Final 2022 Prelim. 2023Δin $Δin %Net Local Levy $ 39,290 $ 41,963 $ 2,673 6.8%Net Local Tax Capacity 108,781125,43316,65215.3%Tax Cap Rate - City 0.36119 0.33455 2,615 -7.4% Final Proposed2022 2023 $ change %General Fund 36,265,400$ 38,677,600$ 2,412,200$ 6.7%Special Revenue - Parking Ramp 54,000 56,000 2,000 3.7%General Facilities R & R250,000 255,000 5,000 2.0%Equipment Revolving Fund 1,174,000 1,356,000 182,000 15.5%Major Streets 2,651,000 2,576,020 (74,980) -2.8%Fire Apparatus 360,000 360,000 - 0.0%Park Systems Development & R & R 528,000 539,000 11,000 2.1%DataBank Abatement 16,000 16,500 500 3.1%Debt Service 1,769,523 1,826,511 56,988 3.2% Grand Total Levy 43,067,923$ 45,662,631$ 2,594,708$ 6.0%Allocation of Property Tax Levy Eagan Property Tax History: City Taxes Only2019 2020 2021 2022Projected2023Tax Capacity Rate .35227 .35262 .36333 .36119 .33455Market Value Rate 0.0001235 0.0001359 - - -Market Value$ 200,000 661 665 657 653 605 300,000 1,058 1,063 1,053 1,057 969 345,478 Pay 2022 Average Eagan House Mkt Value 1,226 393,843 Pay 2023 Average Eagan House Mkt Value 1,311 400,000 1,454 1,460 1,449 1,440 1,334500,000 1,823 1,831 1,817 1,806 1,672 600,000 2,276 2,285 2,271 2,257 2,091700,000 2,728 2,740 2,725 2,709 2,509 City Portion of Taxes on Average Value Home2020 2021 2022 Est. 2023Average home value 313,077 324,634 345,478 393,843% increase 4.8% 3.7% 6.4% 14.0%City portion of property tax 1,115 1,150 1,226 1,311% increase 5.9% 3.1% 6.6% 6.9% Public Policy Issues•Is the City Council supportive of the proposed 4.4% increase in the 2023 budget and the 6.0% increase in the 2023 Property tax levy adjustment?•Is the continued plan for the phased‐in tax levy approach and the use of fund balance in the General Fund acceptable?     Agenda Information Memo  August 8, 2022 Special City Council Meeting    VI.  American Rescue Plan Act Funds Update    Direction for Consideration     No formal action is needed. Staff will provide an update on the current status of the ARPA (American  Rescue Plan Act) funds received and uses to date. Staff will also outline a schedule and proposed  spending plan for the use of ARPA funds.    Facts     The City of Eagan received nearly $7 million in ARPA funds for Covid relief and recovery efforts.    Staff last updated the City Council at the January 11, 2022, Council workshop with a draft of  proposed spending and use of funds plan.   Additional refinement of the plan continued based on City Council action, pandemic  progression, United State Treasury’s issuance of the Final ruling (guidance of American Rescue  Plan Act), and identified department needs by the Senior Management Team.   The Final Ruling was issued January of 2022 and allows much more flexibility with the use of  funds by offering a standard allowance for revenue loss of $10 million, allowing recipients to  select between a standard amount of revenue loss or complete a full revenue loss calculation.   Recipients that select the standard allowance may use that amount – in many cases their full  award – for “government services.”   The Plan is devised to best spend the ARPA Funds by maintaining a spending plan in the spirit of  American Rescue Plan Act.   At the January workshop, the Council reviewed the possible uses for ARPA funds, with staff  noting that lost revenue will comprise the bulk of the ARPA fund usage.  Those early projections  totaled $4,235,450 into 2024, when the allowable use of funds period ends.     The 2021 Annual Comprehensive Financial Report was recently presented to and accepted by  the City Council at the June 21, 2022 meeting with 2021 results for the Enterprise Recreation  funds being notably improved from the early lost revenue projections that were presented.      Early  Projections Current results change Eagan Community Center 999,000                        436,190                        562,810                         Eagan Civic Arena 183,100                        5,100                            178,000                         Cascade Bay 248,550                         ‐                                 248,550                         1,430,650                    441,290                        989,360                         2021 Lost Revenue Estimates    Improved financial results diminish the need to replace the lost revenue for the Enterprise  Recreation Funds. Projections for the use of funds were revised to reflect the updated financial  results which amounts to $2.7 million in savings.   To date, the City Council has approved $2.2 million of needed capital purchases and projects to  be funded by ARPA monies. Those projects are in process and include:  o $300,000 for technology and accessibility improvements in the Council Chambers to  allow for better access to remote meeting opportunities for the City Council, staff and  the public  o $100,000 for well improvements at Blackhawk Park   o $820,000 for HVAC improvements at the ECC   o $1,000,000 for two Fire engines.   Previously approved COVID policies are programmed to be funded with ARPA funds, including  costs associated with the COVID Leave Policy (leave time for those sick, quarantining, etc.).  Additionally, hiring incentives in the Parks and Recreation Department were included in the  previously presented ARPA plan.   The ARPA plan that was presented at the January workshop included $800,000 for future COVID  mandates/incentives.  The most recent plan does not include monies for future mandates.   Collectively, the items above amount to nearly $6.4 million, with the additional capital requests  totaling $3.27 million that were added subsequent to the January workshop.   Should the City have remaining ARPA dollars, projects for future consideration could include:  o Various sewer, water, broadband and infrastructure projects  o Purification systems  o Personal Protective Equipment (PPE)   Staff will plan to provide another update on the status of the ARPA Plan in Spring of 2023.    Policy Questions for Consideration:    1.) Is the Council supportive of the current plan for utilization of the ARPA funds based on what is  currently known about the pandemic, and its budget impacts?  2.) Does the City Council have any general direction they would like to provide as it relates to the  proposed ARPA plan?    Attachments:    VI‐1 Proposed ARPA Funds Finance Plan  VI‐2 ARPA Plan project summary  VI‐3 Slideshow presentation          2021 2022 2023 2024 Total Beginning Cash 3,458,672     2,779,514     3,264,323     1,034,323       ‐ 2nd Allotment 3,458,672       ‐ Investment Income 4,726              1 Personnel Health  ‐ COVID Leave Policy ‐ sick (106,930)       (180,000)        ‐                  ‐                 (286,930)             ‐ Vaccine Incentive ‐ Vacation (25,164)         (48,863)          ‐                  ‐                 (74,027)              2 Hiring Incentive ‐ Parks/Rec** (10,500)          ‐                  ‐                  ‐                 (10,500)              3Lost Revenue  ‐ Eagan Community Center (436,190)       (400,000)       * (400,000)       * (300,000)       * (1,536,190)         ‐ Eagan Civic Arena (5,100)            ‐                 *‐                 *‐                 * (5,100)                 ‐ Cascade Bay ‐                  ‐                  ‐                  ‐                  ‐                      4 Technology Improvements  ‐ Council Chambers and Eagan Room** ^‐                  ‐                 (300,000)        ‐                 (300,000)             ‐ Audio/Video Improvements (Other Rooms)‐                  ‐                 (200,000)        ‐                 (200,000)             ‐ IT/PWs ‐ ESRI upgrade ‐                  ‐                  ‐                 (50,000)         (50,000)               ‐ GOVQA or Laserfiche for Data Requests ‐                  ‐                 (50,000)          ‐                 (50,000)               ‐ Workflow Improvements (Laserfiche etc.)‐                  ‐                 (50,000)          ‐                 (50,000)               ‐ Permit Software Upgrade (PIMS)‐                 (255,000)        ‐                  ‐                 (255,000)             ‐ Noise Reducing system for Police ‐                  ‐                 (30,000)          ‐                 (30,000)               ‐ Financial Software upgrade ‐                  ‐                 (800,000)        ‐                 (800,000)            5 Green and Environmental Investments  ‐ HVAC improvements ECC** ^‐                 (820,000)        ‐                  ‐                 (820,000)             ‐ Public Works ‐ Fuel system ‐                  ‐                 (300,000)        ‐                 (300,000)            6Other Initiatives/Capital purchases  ‐ Parks and Rec ‐ Blackhawk well failure**  ^ (100,000)        ‐                  ‐                  ‐                 (100,000)             ‐ Parks and Rec ‐ Rahn Utility Relocation ‐                 (30,000)          ‐                  ‐                 (30,000)               ‐ Fire ‐ 2 Fire Engines**‐                 (1,000,000)    ‐                  ‐                 (1,000,000)         ‐ Police ‐ Locker room ‐                 (150,000)       (100,000)        ‐                 (250,000)             ‐ Radar speed trailers ‐                 (40,000)          ‐                  ‐                 (40,000)               ‐ River Valley Acre (RVA) site improvement study (50,000)         (50,000)              Ending Cash 2,779,514     3,264,323     1,034,323     684,323        (6,237,747)        ^Previously presented in December of 2021 ** City Council Approved ARPA Funds Schedule ‐ August 8 Workshop Summary of Proposed ARPA Funds Project Expenditures    City Council Chambers and Eagan Room Technology Improvements   Provide more reliable broadcasts and equipment.   Less staff needed for productions, increased public access, transparency, accessibility, and  reduced maintenance costs.    Will allow public “hybrid” meetings where people can participate remotely and in person.    ESRI upgrade Utility Network Model Architecture   ESRI software inventories, analyzes and architects a variety of assets that the City owns and  maintains such as Utilities, Streets, Parcels, Water Resources, and Fiber Infrastructure resources.   The ESRI upgrade to the Utility Network Model architecture would increase performance,  quality control and add new capabilities when maintaining complex utility‐based GIS data with a  variety of attributes.   ARPA funds will help staff research, prepare, and transition to this new model.    GovQA or Laserfiche for Data Requests   There is a need for a more central and formal process for Police and Administration to receive  data requests.   Online solutions would provide an easier way for requestors to request and receive their data.   A better reporting system to track retention of data and to easily compile reports for council or  staff.     Laserfiche Workflow Improvements   In 2020, the City made a significant investment to upgrade the licensing of our Laserfiche  (document archiving) software to provide us capabilities of using the workflow features to  ingest documents into an online system.    Workflow improvements would increase the productivity of our staff members that review,  append, and ingest data into the Laserfiche system.  Workflows automate processes and  eliminating manual tasks such as manually saving each document into the Laserfiche  repository.  It also reduces errors in entry of data into the system and improves transparency  and control over data accessibility.   The City currently has two workflow processes in place, Human Resources onboarding and the  Historical Society archiving.  ARPA funds would be used to assist multiple departments design  new workflows that will increase their document archiving productivity.    New Permitting Software    Replacement of existing LOGIS permitting software (PIMS)   Purpose is greater transparency for customers, more efficient workflow processes, better  mobile capabilities, and improved integration with other systems   Permitting software is used by many departments for a variety of purposes.  Selection will  involve an intradepartmental work group.    Noise Reducing System   Inadequate sound mitigation was installed during the construction of the building.   Assists in quieting the building as noise travels between areas and ensures that the public will  not hear staff discussing investigative matters or private data    Financial Software   LOGIS membership is currently in the process of reviewing responses to an RFP (request for  proposals) for new financial software that includes accounting, human resources, payroll,  accounts payable, budgeting modules to replace our current suite of financial software  applications.   The City of Eagan has used the LOGIS‐supported and locally‐hosted software (JD Edwards,  Hubble) for over 20 years.   Web based software is proposed with many new features that would provide great value to the  finance and HR teams while also providing value to other departments and the citizens of Eagan  with increased functionality and efficiencies.    HVAC for the Eagan Community Center (ECC)    The mechanical system for the ECC is original and was beginning to fail in 2020, and after  consulting a Commercial HVAC specialist, it was recommended to replace system.     Efficiencies should be gained with a new system, along with predictability of performance,  which is critical in a building that hosts large conferences, weddings, family gatherings, and  fitness operations.   The energy management system will also be updated and allows for all of our mechanical  systems to be on the same online management platform for staff to program more consistently.    Fuel System   Located at the Central Maintenance Facility, serves all City‐owned vehicles and equipment.    Two 10,000 gallon unleaded fuel tanks and one 10,000 gallon diesel fuel tank.     Existing fuel tanks installed in 1987, located underground.  Recommended life cycle = 30‐years  (reduce risk of fuel leaks).    Blackhawk Well replacements with Fresh Water line   The Blackhawk pavilion and bathroom structure has had chronic maintenance issues.  Staff were  told by the well company that a new well would not be a guarantee as a fix because of  challenges at the aquifer level with large amounts of sediment, etc.  Staff worked with Utilities  to run a freshwater line from the west to replace this utility need for the location.   Solution is complete and water service at one of our most highly used parks is set for decades.    Rahn Utility Relocation Project    Concurrent with Rahn Park Building Project in 2022, this was identified early in as an issue  where the water line/sewer line would be directly under the new covered patio.     Infrastructure modifications to this caliber were not built into the parks CIP budget for this line  item and qualified for ARPA consideration.   Project allows access to utilities without having to impact new covered pavilion for this site.    Fire Engines   ARPA Funds were used to pay for the replacement of two fire engines in lieu of the issuance of  bonds.        Police Locker Room   The women’s locker room space is full.   The proposed additional space will address current locker shortages and future space needs.   Increase in construction costs has resulted in the need for additional funding to complete the  project.     Radar Speed Trailers    The current speed trailer is over 10 years old and needs to be returned daily to charge. Two  new trailers are proposed for purchase.   The new units can be used year‐round and have security functions that will allow the  department to keep both units out 24‐hours per day.    Real time data can also be obtained versus waiting to download the data when the current  trailer is returned.    River Valley Acre (RVA) Site Improvement Study   The proposed study will address needs at the Citys RVA site, including:  o Site Grading & Drainage (includes Storm Water best management practices)  o Sewer Dumping Station & Vehicle/Equipment Storage  o Public Safety Training Enhancements  American Rescue Plan Act (ARPA) FundsAugust 8, 2022 City Council Workshop ARPA Funds - OverviewMarch 11, 2021 – President Biden signed the actCity of Eagan allocation - $ 6.9 millionFunds are released in two tranches (equal payments)-July 2021 and 2022 ARPA Funds - OverviewFunds must be obligated by December 31,2024 and spent by December 31, 2026. Unexpended funds must be returned to the Federal GovernmentFinal ruling issued January 2022Standard allowance for revenue loss of $10 millionSpending plan maintains the spirit of the ARPA ARPA Funds - OverviewPandemic Spending PrioritiesoReplace lost revenueoAddress Public healthoCommunity-wide Capital Improvements- One-time proceeds for community asset improvements- Investment into technology ARPA Funds - OverviewEnterprise Funds - lost Revenue results were improved by $990k in 2021 vs earlier projectionsRevised projections amounts to $2.7 million in ARPA savingsARPA approved projects/purchasestotal $2.2 million to date ARPA Funds - OverviewCOVID health and hiring incentive policies funded by ARPA funds total and estimated $361,000No monies are set aside for unfunded mandatesCollectively, the ARPA plan totals $6.2 million of expenditures ARPA Funds - OverviewFuture consideration for remaining fundsVarious Sewer, water, broadband and infrastructure projectsAir purification systemsPersonal protective equipment (PPE) ARPA Funds – Policy Questions1)Is the Council supportive of the current plan for utilization of the ARPA Funds based on what currently known about the pandemic, and its budget impacts?2)Does the City Council have any other general direction the City Council would like to provide as it relates to the proposed ARPA Plan?