July 13 Grand Forks Budget Preview

2021 Mayor’s Budget
Preview
City of Grand Forks, ND

July 13, 2020
AGENDA
2020 Budget Impacts
2020 Revenues – Year to Date
2020 Action Plan
2021 Salary & Benefit Update

Organizational Changes/Restructures
2021 Budget Projections

Key Revenue Projections
Expense Reductions
2020-2021 Budget Comparison
Upcoming 2021 Budget Timeline
2
2020 BUDGET IMPACTS
March 30th
Healthy Reserves
Funds Safe & Secure
May 4th
Budgetary Update/Action Plan
June 1st
COVID Expense Summary
June 19th
Communication Regarding Updated Sales Tax Projection Based on
Updated Collection Data
3
2020 REVENUE COMPARISON
4
5
Building Permits Issued Through June 30th
Total Permits Building Value of
Issued Permits Issued Construction
2020 2,097 738 $102,867,864
5-Year Average 2,102 808 $69,866,318
2020 Percent of
100% 91% 147%
5-Year Average
$681K Revenue Collected (76% of Budget)
6
2020 BUDGET ADJUSTMENTS
GUIDING PRINCIPLES
Flexible Approach
Adapting to New & Better Information
Monitoring CARES Act & FEMA Funding
$462K Requested YTD | $340K Expected
Additional Reimbursements Possible (Pending Funding)
Reduce Operating Expenditures

Delay Capital Projects & Capital Expenses
Strategic Use of Cash Reserves
Pause on Salary & Benefits
Positions | Promotions | Training
7
2020 REVENUE IMPACTS
$8,673,000*
Estimated City-Wide Revenue Declines ($2M General Fund)
Assumes Revised Revenue Decreases
Sales Tax (15% Decline | Originally 25%)
State Aid (20% Decline| Originally 25%)
Gas Tax (20% Decline | Originally 25%)
Building & Related Permit Fees (5% Decline | Originally 25%)
Engineering & Admin Fees (20% Decline | Originally 25%)
Utility Fund Revenue Decreases
2.5% Stormwater
5% Sanitation
10% Water & Wastewater (Decreased from 15% Est.)
*Excludes Alerus Center Operating Accounts

*Previous Revenue Decrease Est.: $12.76M 8
2020 EXPENSE & CASH REDUCTIONS
$7,900,000 City-Wide Expense Cuts*

Delayed Construction Projects | Capital Expenditure Decreases
General Operating Expenses | Fuel Savings | Wages & Benefits
$773,500 Net Use of Cash/Reserves**

$365K Fire Operations Reserve
$350K Loan & Stabilization
$50K Use of Department Carry Over
* Previous Expense Reduction Est.: $9.78M

**Previous Net Use of Cash Est.: $2.97M
**Includes No Transfer to General Fund from Street/Infrastructure (Previously $750K) 9
COVID-19 FINANCIAL IMPACT
2020 SUMMARY
Original Estimate Revised Estimate
2020 Estimated
($12,758,107) ($8,672,855)
Revenue Decrease
Expense Reduction $9,783,426 $7,899,426
Use of Cash &

$2,974,681 $773,429
Reserves
10
Salary & Benefit Update

July 13, 2020
PROPOSED EMPLOYEE SALARY INCREASES
Summary of Findings:
Salary Data unreliable due to COVID-19 Pandemic
3.66% Pre-Covid
6 of 12 Entities Provided Updated Estimates as of

Late June 2020
12
PROPOSED EMPLOYEE SALARY INCREASES
Summary of Recommendations:
Keep all Pay Grades at Current Range
$1,000.00 increase for each employee

1.58% Avg. Increase
Will cover increase employee cost share of family health insurance
plan (8% increase in 2020, est. up to 7% in 2021, $690 over both years.)
Hold on moving forward with NDPERS Public Safety Pension

Plan
Resurvey benchmark positions in 2021 for 2022 Budget
13
Proposed Departmental
Restructures

July 13, 2020
PUBLIC WORKS OPERATIONS DIVISION
Promotion (1)
Asset Management Coordinator
Position Elimination (1)

Public Works Services Coordinator
Goal
Assist Public Works Operations Director with planning, organizing, and
implementing public works maintenance and operations functions including
asset management, administering recycling program, fuel management, and
budgetary and data analytics. Supervises subordinate staff including
administrative staff, maintenance and custodial Staff.
Cost Impact
Increase of approximately $4,400
15
WATER WORKS DIVISION
Promotion (3)
Water Operations Manager
Water Treatment Plant Manager
Wastewater Treatment Plant Manager

Water Distribution Supervisor
Water Treatment Plant Supervisor
Wastewater Treatment Plant Supervisor
Goal
Assist Water Works Director with managing projects and the operation of
either water treatment, wastewater treatment, or distribution/collections
system facilities. Supervises subordinate staff including lead, senior, and
entry level operators at each facility.
Cost Impact - Increase of approximately $21,500
16
FIRE
Promotion (2)
Deputy Fire Chief

Battalion Chief
Goal
Distribution of administrative duties and succession planning.
Currently 3 of the 5 battalion chiefs supervise a fire suppression shift
and work the 24 hr. shift schedule. This shift schedule makes it
difficult to manage many day to day administrative functions.
Cost Impact
Increase of approx. $18,500, offset primarily by slippage
17
PUBLIC HEALTH
Reporting Change (2)
Regional Emergency Response Coordinator report directly to Public

Health Director
Relink to Team Leader at a Range 58 to reflect current job

duties
Position will change from non-exempt to exempt status
Goal
Better align department with the supervision required to achieve the
critical mission and support of the Regional Emergency Response
Coordinator positions.
Cost Impact - Increase of $14,300
18
INSPECTIONS
Promotion (1)
Inspections Supervisor
Position Elimination
Building Trades Inspector (1)
Goal
Inspections Supervisor will supervise the Building Trades
and Building Inspectors and provide guidance and
mentorship while providing a high level of customer
service on building code enforcement.
Cost Impact - Cost Neutral, Budgeted for 2020.
19
HUMAN RESOURCES
Promotion (2)
Human Resource Manager
Retitle (1)
Safety Coordinator

Assistant Human Resource Director
Human Resource Generalist (1)
Compensation & Benefits Administrator
Goal
Human Resource Manager will perform a variety of advanced managerial,
technical, and professional activities to assists the HR Director with administering
human resource programs. Safety Coordinator will be responsible for the
planning, implementing, and overseeing of the City’s employee safety at work.
Cost Impact - Reduction of approximately $16,000
20
MAYOR’S OFFICE / PUBLIC INFORMATION CENTER
Disassemble and Restructure Under City Administration
Position Elimination (2.25)
Community/Government Relations Officer
Temporary Administrative Staff
Welcoming Coordinator
Reorganization Job Titles
Marketing & Communications Coordinator
Public Information Officer
Community Services Coordinator
Policy Analyst
Goal
Tell the story of Grand Forks City Government, gathering and distributing
information to keep citizens informed about city policies, programs, services
and neighborhoods.
Cost Impact - Cost savings of approximately $173,600.
21
Preview

July 13, 2020
2021 MAYOR’S BUDGET PREVIEW
Sales Tax - Reduced 20% from 2019 Actual Collections
State Aid - Reduced 30% from 2019 Actual Per State Projections (NDLC)
Highway Users - Reduced 15% from 2019 Actual Per State Projections
Building Permit Revenue - Budgeted 15% Decrease of 4-Year Ave.
Mill Value | 2.09% Increase
0.6% Due to Revaluation | 1.49% Due to Growth
2020 Actual | $233,037
2021 Estimate | $237,908
2021 Budget to Slightly Reduce Average Tax Bill
Utilities | Minimal Rate Impacts
23
2021 MAYOR’S BUDGET PREVIEW
Wages
Proposing $1,000 Across the Board Salary Increase
Soft Freeze on Hiring
Filling Positions on Case-by-Case Basis
Capital
Pause & Review Many Capital Purchases for 2021
Other Decreases
Use of Reserve Balances | $1M (L&S, Fire Res., Dept. Carry Over)
Cell Phone Reimbursements 50% Reductions
Travel & Education 50% Reductions
Maintain Appropriate Unassigned Fund Balance
Currently at 20% of Expenses | Policy Minimum of 18%
24
2021 BUDGET TIMELINE
July 20th
Presentation of 2021 Mayor’s Budget
August 3rd
Preliminary Approval of 2021 Budget
August 31st
County Sends Preliminary 2021 Tax Statements
September 14th
Public Hearing on 2021 Budget
Final Approval of 2021 Budget
25

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2021 Mayor’s Budget

City of Grand Forks, ND

2021 Salary & Benefit Update

2021 Budget Projections

Upcoming 2021 Budget Timeline

2020 2,097 738 $102,867,864

5-Year Average 2,102 808 $69,866,318

$681K Revenue Collected (76% of Budget)

Reduce Operating Expenditures

*Excludes Alerus Center Operating Accounts

$7,900,000 City-Wide Expense Cuts*

$773,500 Net Use of Cash/Reserves**

* Previous Expense Reduction Est.: $9.78M

Expense Reduction $9,783,426 $7,899,426

Use of Cash &

City of Grand Forks, ND

Salary Data unreliable due to COVID-19 Pandemic

6 of 12 Entities Provided Updated Estimates as of

$1,000.00 increase for each employee

Hold on moving forward with NDPERS Public Safety Pension

Resurvey benchmark positions in 2021 for 2022 Budget

City of Grand Forks, ND

Position Elimination (1)

Position Elimination (3)

Cost Impact - Increase of approximately $21,500

Position Elimination (2)

Regional Emergency Response Coordinator report directly to Public

Relink to Team Leader at a Range 58 to reflect current job

Cost Impact - Increase of $14,300

Cost Impact - Cost Neutral, Budgeted for 2020.

Position Elimination (3)

Cost Impact - Reduction of approximately $16,000

City of Grand Forks, ND

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