Good evening everyone. It is now 6:30 and I will call this budget work session
of the Burnsville City Council to order. Um members of the public always welcome
to attend in person and also may choose to watch the meeting on burnsville
mn.gov/meings gov/meings
or Comcast channel 16 or 859. The public can also participate through
Zoom by joining us at zoom. us/join. More information is available on our
meetings web page and in the council agenda packet. This is a budget work
session and we go directly to our agenda. And the first item on the agenda
is the capital improvement plan review. And Jenny Rodia, our deputy city manager
and CFO, is presenting. Jenny, the floor is yours. Thank you. Um, good evening,
Madame Mayor and Council members. Tonight,
we will uh be reviewing the capital improvement plan during this budget work
session. Um, this is the proposed plan for 2027 through 2031.
We'll start out with capital studies. In 2023, as we were preparing for the 2024
budget, we realized there was additional information that really we needed to
help um make short-term and long-term capital decisions. So, we identified six
studies at that time um to really help in data-driven decision- making um and
then we over the course of the last two years, we've we've um identified seven
more. So for a total of 13, we've been working through those studies over the
past couple of years and we anticipate completion of all of the studies in time
for the 2028 budget. So certainly we have a majority of them completed at
this time, but there will be a couple more um coming at the year end. So um
all of those will be completed by the time we're um preparing for 2028's
budget. They also include ongoing updates. So,
as we're as we are um carrying these forward, we're updating those and
managing that data in a way that we can keep them updated and keep utilizing
them for future capital plans. The first group of the first group of
six studies are on this slide. Um those were um finalized and discussed um from
2024 through 2025 with the fleet study being the the last one completed last
December. The other seven that were identified um
we're still working through with um two that you saw earlier this evening. The
city-owned property study and the sidewalk trail study and then the parks
camera and lighting study is planned for October and the street light study is
planned for December.
Our 2027 plan uh the financial management plan identified a 7.69
year-over-year tax increase. that does um match the last and final year of the
non-binding resolution from the 2023 budget. Um we are currently balancing
the budget to that target. Certainly over that five years and and
continue we we still have unpredictable condition conditions right now that are
that are challenging that budget but we feel what we're presenting tonight is
really responsible to support operations and future planning in including the for
the capital funds
in 2027 we are continuing to see inflationary pressures although in some
areas they've flattened out we are definitely still seeing those especially
um tonight in some of our capital funds as well as operations
um increasing demand for services and uncertainty around federal and state
grant grants and funding um [clears throat]
that continues. Uh there there is also a proposed um OM
uniform guidance revision that really does govern federal grants and
administration and that is expected to be implemented later on this year and
that's expected to have some significant changes for local governments in the way
um federal grants are administered and used.
» J what kind of services are we starting to see increased demand for? Um I think
across our really across our public safety but as well as even you know in
our other areas, parks, public works, right? There just really is um an
increased an increased overall demand and that is definitely putting pressure
in the capital on us on the capital areas as well as operations.
» Okay. Thank you. >> Yeah. I also see in the um [snorts] city
manager's um weekly report that we're getting zero in
LGA, >> correct?
» In 27. >> Yep.
» So, we're going to have to backfill on I think it vehicles vehicles were part of
that. >> Yep. And we'll talk about that a little
bit um as we talk about that fund. So we'll touch on that your realities and
» um and this really we feel like this plan prioritizes and continues to
prioritize um what we need for a sustainable future going forward last
year. >> The overall capital plan for all capital
purchases um this is a bar showing kind of the the planned investments in each
year. Um total across all five years is about $217 million. that is about a 12%
or 20 $23 million increase over last year. Um two of the funds um that have
the majority of increases are the water and sewer fund with about 9.5 million
and the ITF fund with about 9.5 million increased projects. And I'll talk a
little bit more in depth about those plans um when we get to those funds. But
um overall an increase um this doesn't include any police city hall budget.
that budget was in 2025, but it does include an estimate in 2028 for um fire
station 2.
Um just as a matter of reminder, the levy um [clears throat] we have seven
levy funded capital funds um their forestry infrastructure trust fund um
improvement construction, street maintenance, parks renovation, equipment
and vehicle and information technology. So those those capital funds are
primarily funded and supported by the property tax levy.
» Mayor, just one question. The difference between can you delineate the difference
between the infrastructure trust and street maintenance fund?
» Yeah. Yeah. So, the infrastructure trust fund is really used for um major street
improvement projects where we're doing reconstruction, rehabilitation,
um those kinds of, you know, we're replacing the road in essence,
» significant overhauls. >> Yeah. The street maintenance is more for
um right-of-way maintenance and that kind of routine year-over-year type of
projects. >> Gotcha. Yeah. infrastructure goes for
reconstruction, rehabilitation and
reclamation. >> Yeah.
» Like replacing assets where the maintenance is just
» kind of annual upkeep. >> Yeah.
» Yep. >> Street sweep sweep.
» Um then these funds are special revenue and enterprise funds. So these funds
also have um significant capital purchases with within them and they are
funded really through other types of fees um whether that be charges for
services, franchise fees or um utility fees.
Um the first fund we'll talk about in depth is the parks renovation fund.
this fund um is informed and [snorts] the investment um in the CIP is informed
by the parks plan that was actually our first capital plan completed in 2024.
Um we're really prioritizing the replacement of condition one and two
items that were identified in that plan. Um with safety being a priority as well
as when there are are nonrelevant amenities that are end of life, we'll
remove those. Um there's been additional studies and there will continue to be a
couple of additional studies that will continue to inform future projects in
parks. In terms of our progress on condition
one and two assets, we do maintain a parks asset management dashboard. That's
a live database that reflects the status of park assets. Um condition
description, um CIP, year planned, those kinds of things. It's a live database
though that reflects the status of park assets at a point in time. So as um it
includes both operational and capital items. So while it includes those that
are in this capital plan, it also includes assets that would be replaced
as part of operational maintenance um activities.
The original plan in 2024 identified 293 condition one and two assets
and about $7 million.
And [snorts] as um as assets continue to deteriorate or are improved, those
condition scores are updated. So it is kind of a constantly changing database.
Project years are updated after the CIP is approved. So once we have a CIP, if
we've um added any projects or switched or maybe we've shifted years, we make
sure to update that once once the CIP is approved.
The major projects in the parks renovation fund for 2027 are listed
here. Um, Alamagnet East parking lot replacement is a condition one asset
that is the largest um individual project that actually was um I believed
moved forward or shifted forward a year because of its condition. So that is um
is a majority or a big percentage of of the increases in or the projects I
should say in 2027. Um, we have a few projects at Echo Park, a playground
replacement, a tennis court replacement, a parking lot and trail. Those are both
one and two condition assets. So that I forgot to say the number behind just
indicates their condition score. So one and two assets are either poor or below
average condition assets. >> Jenny Garrett Laban picnic shelters. Are
these the ones in the park or the ones up around the athletic
Um, Madame Mayor, these would be the uh ones
that are more for uh the picnicking to the north, not by the athletic fields.
» Yeah. So, they're down in in the park, not up at the athletic campus.
» Yep. >> Okay.
» Do we have do we have the uh money in the fund for this now? Is it in the
parks fund now? So, that this is money that we have set.
» Correct. This is in the capital improvement plan. That's what you want
to make sure. >> Yep.
» Madam Mayor, >> the Alamagnet East parking lot. Uh I
think I know what it So the the west would be the first smaller one as you
come into the park. The east one is is Are we talking about the entire length
of where parking starts all the way to the north?
» Is that that entire area is considered the east
» by the dog park? >> Yeah.
» That that parking strip by the dog park. [clears throat] Yeah. Starting at the
dog park going all the way to the north. >> Gotcha.
» Yeah, that's subual. >> Yeah,
» that's a monster parking lot. >> That's why it's 1.2 million. [snorts]
» It's in rough shape. >> Thank you.
» Um, so as we put the financial plan, the five-year plan together for the budget,
some key assumptions. Um, there was a 3% increase in the property tax levy in
2027. [clears throat] um for future years as we as we um developed developed
the finance plan, we included 6% a 6% levy rising to 10% by 2031. That isn't
overall. Keep in mind that's not overall. That's just within this fund.
Um if we looked at five-year average annual expenditures, uh they're about
$3.3 million, but our five-year average annual revenues were about 3.1. And that
does include um this increase investment in the property tax levy. The average
levy is about $1.3 million a year. So we have about $2 million a $2 million
um difference. A majority of that currently is covered
by landfill host community fees um that are expected to be about $1.7 million in
2027. Um as we look at that fee while that's
is covering a majority that is covering a big portion of those parks investments
we do know that host community agreement um is la is um estimated
um will continue sorry we'll continue through landfill capacity and that was
originally estimated in a to be approximately 10 years. So, as we think
about this fund going forward, we wanted to start making some small increases in
the property tax levy so that when host fees do decline, we'll have revenue to
um make up that difference >> and that'll get to all of the one and
twos that we need to get done. >> We will be prioritizing those certainly
more. We have a large number of category 3 assets kind of those average assets
» because that's coming up. So we know that that will continue
» thinking about the one and twos. >> Correct.
» Okay. >> So we know that will come be one and
twos but we will continue that investment. So we wanted to make sure we
were starting to think about you know the future levy once host fees do
decline and that we're going to be in a place where where we don't have a big
shortfall. [clears throat]
Parks visioning. Um we have done um we have done parks visioning in phase one
for 26 community and neighborhood parks. Um that really is a guide for existing
maintenance and any future improvements. Certainly as parks are identified for
improvement. It we would we would look to that as a guide and it includes base
design concept as well as any visionary concepts like what what new things could
we add? Um next steps in terms of the parks renovation fund as you mentioned
madame mayor prioritize condition one and two assets and continue to do that
in the future. Um we reviewed the sidewalks and trail study tonight and if
there is a if um and once we have a trail plan that will help inform the
future um as well as a parks vision building study and a vision study for
remaining parks. So we are still planning to do a phase 2 vision study
for the remaining parks in the system.
Um [clears throat] this is just a graph of the the finance finance picture here
of the parks renovation fund. As you can see we do have some significant
expenditures in the near term. As um council member Gustoson me mentioned
that park that parking lot in 2027 is quite large but we do have the funds on
hand to manage that. um that blue line kind of that blue line running across is
our target fund balance and the black line that you see kind of go down to the
blue line and back up again is what we expect our ending fund balance to be. So
with this plan we do anticipate that we do remain
within our fund balance targets. >> I got a lot of questions tonight. Yeah,
» this is actually for Garrett. I think um we've we talked about uh um inclusive
type parks that like we have at Red Red Oak. Is this in these plans now for
going forward that because I know we talked about zoning our putting in
different zones of the city. Is that part of this plan?
Um, I would say from the the parks renovation fund in general that the the
type of cost associated with the playground that you're talking about
would not come out of a park renovation fund. That that's more of a replacement
asis kind of situation. Um, we will need to be once we get through all these
studies and start to look at the future of our park system, we'll want to be
looking into how do we start to accomplish some of those things like you
just talked about. And um, as I've shared before, you can pretty much
double the cost of a playground when you want to put in a port in place surface
that makes it inclusive. Um, in addition, if you really want to double
down on an inclusive type playground, those that equipment tends to be more
expensive as well. So, um, there's there's a lot of factors that will go
into >> add on then right now.
» So, those Yes, that would be that would be more in the improvements area than it
would be in the parks renovation area. >> Thank you.
» Yep. >> Yeah. Currently in the parks renovation
fund, it is really just replacing those one and two assets,
» at least at this time. The parks investment fund, um, this is,
uh, basically funded with parks dedication fees. We do have a couple of
small projects in this fund. Um these are for any new fiber and security if
those projects do come up in the current um in the next year as well as any other
improvements that might come up that are new. Um those but those total a 100,000
combined or a little less than $100,000 combined.
» How much do we have in the parks investment fund? Oh, I see. It's you I
just asked ahead of you. We'll get there. Who's there?
» Yeah. Um, currently right now, as we we just mentioned, we're taking care of
what we have first. Um, we do have budget carried forward for a pickle ball
project that was um $1.1 million and was budgeted in 2025. We
have carried that forward as we've gone through that that process and again um
we'll be revisioning the remaining parks that we have. But the fund balance
available for future projects is I think this is the same about the same as what
we said last year about $5.9 million um in that fund.
» We got to be real thoughtful about that. That all we have in the parks investment
fund is 5.9 million. >> Yep.
» Yeah. There isn't a Oh, go ahead. >> Go ahead. Finish your
» um Dan G. >> I can wait.
» Okay. >> Okay. I'm G.
» Yeah. I'm sorry. >> I'm first. [laughter]
» Yeah. W can
» I'm looking at you and saying G >> uh
» you said it's almost exactly the same amount as a year ago
» very similar >> is there do we get investment results or
do we apply our investment results by the fund where the
» the source uh principle is is is sitting right so a year ago this 5.9 might have
been 5.5 or six or seven >> it's possible there were some
expenditures. I do think we had um a trail project that got completed. So
there were some expenditures from the fund but generally speaking yes they
have invest basically this fund has parks dedication fees and then
investment revenues right >> um annually based on the fund balance.
» One of those I suppose maybe the largest [clears throat] of recent time would
have been waste management's contribution as a result of the landfill
agreement that they I was it 2.9 million? Yeah, I think so about half is
that about right? Is that half that fund is from that?
» Yeah, I think yeah, I think it was about $2 million if
» it was 1.9 something otherwise is
» and it just gets into the investment fund because it covers all the parks
» investments. Yeah. >> Um here is the where you see that top
bar at the top. Um so you'll see that investment is slowly growing. Um we
don't assume we only assume about $100,000 annually for parks dedication.
We know that in some years we won't get any. Um we did get some this year. I
think we got about 600,000. And so we don't want to um overestimate
that because it's not really a sustainable source of revenue going into
the future. Um and then that large bar, the gray bar is um that anticipated
alagnet or not l magnet, excuse me, anticipated pickle ball project.
» Okay. [clears throat] Those funds were there at
» Yeah, they were there identified. >> They've been there for a long time
» for a pickle ball project and we've carried those forward as we've gone
through that process. [snorts]
» Um the next fund is the equipment and vehicle fund. So, as we look at 2027's
major project, it really is the replacement of um plow trucks,
ambulances, squads, um a front-end loader replacement. So, that is about
half of half of the capital budget for um 2027 in this fund.
When when we have those um vehicle funds,000
» and uh you're calculating, are you also putting in in that line item the
upfitting of all those vehicles? Because oh my god, the upfitting is more
expensive than the vehicle. >> That is correct, mayor. [clears throat]
When we budget for the each of the vehicles is it's the total cost in. So,
not only is it actually the chassis and the upfit, but also if there's a tax,
title, and license as well. >> Okay.
» Certainly in this fund, again, the demand for services does impact our
vehicles as well as we're seeing just shorter replacement schedules with the
amount of use that certain vehicles get. Um, continued inflationary pressures
that has leveled off somewhat in this fund. And I think we've that we've done
a good job of planning for all those costs in the last couple of years and
getting that getting those budgets a little bit right more right
[clears throat] sized. Um also continued long lead times. So if you look and
you'll see this when we look at the financial picture 2026 includes carry
forwards of $5 million in prior projects. So that really means prior
budgeted um items, pieces of equipment, vehicles that in the most in most cases
have been ordered. We just haven't received them yet. So we're
[clears throat] we're holding a bit of cash right now. And once we once we get
all those vehicles, that cash is spoken for, right, in previous budgets. But um
that just kind of goes to [clears throat] speak to to those long
lead times >> because we have two fire trucks on
order. >> Yes. But we don't have to pay for them
until they're delivered. >> Correct.
» So everything is on. >> Yep. So we will you'll see a larger cash
balance. >> And that's [snorts] and that's including
the upfitting of all of the the fire trucks also.
» Yep. The full cost. Yep. Again, the capital improvement plans in
this fund are are informed by the fleet study as well.
key assumptions. Um there's a 3% property tax levy in 2027.
Uh this will be a this will be similar to the parks fund. We've in included a
6% levy >> [snorts]
» um year-over-year. And this is just in this fund, not overall in the in the not
the overall city levy really rising to 10% by 2031. Uh we did see no local
government aid for 2027. So we're just we're assuming that is zero going
forward. It has gone down from 426,000 in 2024 to 221,000 this year. So really
over the past >> zero is zero.
» Yeah. So that does reduce kind of the the revenues that we can anticipate in
that fund. Really if you're looking at a comparison from 2025, it's about $2
million. [snorts]
» Creates pressure on this particular fund.
» Yep. Um the five-year average of um annual expenditures is about $4.6
million. And the 5-year annual average revenues is about 4.3. Again, we are
slightly below um the expenditures. So, we are drawing a little bit down on fund
balance. And the average levy is about $1.8 million. And that is with that
increase to 10% over the five years. Currently, landfill host community fees
are and equipment certificates are filling the gap in this fund. So, um,
similar to the parks fund, that is a significant revenue for us right now at
$1.77 million annually, but we also know that that is will sunset once the
landfill is at capacity. So, we wanted to start planning for that and be in a
place where um, you know, we're increasing those property tax revenues
um, slowly over time so that that's not so that's not such a big um, jump we
have to make. Um, we were able to reduce equipment certificates um, last year. I
think we had about a little over $7 million planned. We were able to reduce
those to about five. And we will continue to look for ways to reduce that
debt because um, it just saves saves cost, saves interest, and then we could,
you know, we'd rather use that to buy equipment than pay interest on equipment
certificates. So, we'll continue to look at that as we as we go forward in future
plans, but right now we have debt financing planned for 2026 and 2029.
2026 will depend on when we receive those vehicles. So, um it's it may not
happen before the end of the year, but we would we don't want to issue before
we receive the vehicles. Um debt will require debt levies in 2028 and beyond.
One thing that helped is when we did reduce equipment certificates, we did
have debt levy that wasn't needed in the debt fund and we were able to apply it
here. And so we'd like to continue doing that and we'll continue to look for ways
to do that going forward. >> Jenny, can you talk, excuse
[clears throat] me, can you talk just a little bit about future strategy on
equipment related debt and both how we've used it in the past and how we see
appropriate use in the future [clears throat] for the fund? Yeah. Um
we've used it most recently to purchase a firet truck in 2022
» and um we have filled you know we have we have looked at um
financing some larger equipment like firet trucks or maybe larger maybe
ambulances and things like that. Some larger vehicles with a useful life
that's longer. Certainly, we'd rather not issue if you issue debt, you really
want to issue debt kind of the length at least have a useful life that's longer
than the length of your debt. So, we definitely look at that um when we're
looking at opportunities to finance some of these vehicles. And then just trying
to trying to reduce that burden. And so, we kind of continue to to um make those
adjustments year-over-year. And hopefully we'll get to a place where we
can this plan can can adjust those equipment certificates out of this.
» Okay, Dan, >> uh since you brought up fire trucks, I
want a question for uh Chief Jungman who I want to compliment that the hair
growth serum must apparently work. [laughter] Um are we anticipating the
purchase of another fire truck of some sort large apparatus truck in the next
five years? Ambulance would be the next >> one that's up. Uh fire engines and
ladders have typically have their service life. I believe
» I don't know off can't remember off the top of my head what the I think it's
about 10 years service life for for engine it's more for a ladder truck but
ambulances will be the lower of of the group.
» When's the next because the fire trucks are well over a million now. When when
do you anticipate the next ladder andor full-size apparatus truck to be needing
to be required? Is it I suppose it might be in our capital long-term capital?
» Yeah, it we have one program did for 2026 and it's on order. We just haven't
» we're waiting for that one >> and then a 2029. So about every 3 years
we purchase a larger um fire truck. >> How many total large apparatus trucks do
we have? Non-ambbulance.
That one I'm not going to know. I'm gonna have to
» Yeah, I believe I'd have to look at the fleet map, but I believe we have three
engines right now. And I think we have two ladder trucks, but I have to I have
to double check the fleet map. >> Five
of the big big rigs. >> Thank you.
» And we have six ambulances. >> And I think we're due for replacement of
one. >> Yeah,
» we have an ambulance planned in every year of the capital plan basically. So,
an ambulance a year and then about every three years for the fire trucks.
» Just one followup. Is there a need for more ambulance as we scale up the staff?
[cough] >> Will will we actually increase the fleet
of of you know the circulating fleet by a unit or are we just in replacement
mode for the near term? Um, I would have to bounce that off of Chief Jungle, but
the data driven like how how many calls are running on is definitely going to
dictate the amount of ambulance demand, right? And as that's trending
upwards, so will the equipment that we need. So,
» thank you, >> Madam Mayor, members of the council.
We'll get you the specific answers on fire fleet, not to put Nate on the spot.
Um, [snorts] uh, but also generally speaking, is as we've talked about the
fire standard of cover and you look at our capital planning, we have planned
for additional, uh, specific to the question, we have planned for additional
ambulances as the operation scales and is of a scope to address the demand for
calls for service. And that I would assume that's all in because we're good
about comprehensive planning, right? >> It's incorporated into the design for
fair station 2, for example, if that was going to take on another apparatus,
another bay is needed or whatever. >> And it's all on her capital improvement
plan for equipment and vehicles.
» Madame Mayor, members of the council, that that is a one of the the hallmark
and important design features of Fire Station 2. As a matter of fact, one of
the reasons that the current site [snorts] just doesn't fit the the
programmed needs as they've been defined uh both by the fire standard of cover
and the other study that we do to inform what those needs might be is we we know
that uh we essentially need the same type of apparatus bay configuration as
fire station one in fire station 2, which is what's currently contemplated
in the site fit, which then requires us to look for a different site, which is
where the cross town east um parkland um recommendation came from.
» Thank you. [snorts]
» Here's the um financial uh picture or financial plan for um the equipment and
vehicle fund. As you can see, um certainly some larger expenditures
in 2026. That really is the budget plus the carry forward. So, we're at about $9
million and um we're assuming we're spending all those carry forwards once
those vehicles come in. Um they [clears throat] have most of them have
been ordered. And then um the two larger blue bars are the
areas where we have identified um potential [clears throat]
equipment certificates being issued. But during um during the five years of this
plan, we are keeping our fund balance above our target and really maintaining
that fund balance going forward. And again, as we go forward,
um this plan does include a small uh slowly increasing property tax levy to
prepare for um a time when the hoof fees are are no longer available to us.
» Madame Mayor, >> yes,
» clarification of your your terminology. >> When a
a certificate is issued for a new piece of equipment,
» we're buying another one and we're going to issue debt to purchase it. Is that
what the certificate >> refers to?
» Yes, it's it's a bond um kind of quotation marks because it's equipment.
They call them equipment certificates, but it basically is a shorter term um
debt investment. >> Thank you.
» Um the IT capital fund is next. Um major projects include a $2.8 $8 million ERP
system that was um has been carried forward or has been rebudgeted from 2026
to 2027 uh with the focus on implementing a budget system in 2026. We
did shift the ERP system to 2027 that really includes finance HR as well as a
utility um solution. And then we have some network equipment
replacements as well as staff endpoint device replacements and some camera
replacements at the maintenance facility.
» I got to talk about the 2.8 because it's a big number. Uh how old is the system
that we're currently using? Um have we long since depreciated that cost? And
are we using an antiquated system and then or overdue for a major update?
That's a big ticket. So, I think we need to explain to our viewing audience
» what it all really entails and why we're spending 2.8 million on it.
» Certainly, Council Member Keley, we are um on a system that we implemented in
2006. So, we've been on the system about 20 years.
» Um the replacing telephones >> came in when I could go wrong at 20
[laughter] years, right? >> Just just a year after I came here, too.
Um, and it the uh software provider has notified us that they are no longer
making improvements to the software. And while it currently works for us,
certainly new software um will provide features that we don't currently have as
well as just being a little more user friendly for we we certainly expect um a
lot of a lot of people are in our system every day. um departments are entering
invoices and purchase orders and things like that and so a new software will
certainly probably be a more modern and updated platform as well. So it just you
know it's time and we definitely want to um want to make that change before this
this platform doesn't work for us anymore.
» Yeah. >> Sounds like Windows we're no longer
supporting Windows 10. You got to get on 11.
» Yeah. Yeah, Madam Mayor, members of the council, this is a project that has
moved several years out. So, we've talked about this for a few years, as
you recall. Um, it is um reflective of one of the single most important
projects that we will undertake uh over the course of this planning window. Uh,
a very good example of a first step is this year we implemented the finance
team implemented a new budget system. Uh, Adam is our budget manager has been
helping uh the team through that. So everything you see tonight is completely
informed by different technology. Um this project will expand that and help
create the foundation by which once we really have the basics down right will
give us the opportunity to to look at new opportunities to connect with the
community, increase transparency, um improve connectedness across the
community, uh look at how we we make and shape priorities from a budgeting
perspective. So it really gives us the the foundation to move into the future
at a at a faster more effective pace. So important work and a to your point,
council member Keely, a significant investment in the current IT capital
fund. >> But but I I always just want to touch on
your point about sort of getting up to modern. I mean legacy systems are are
great [snorts] because they become very stable over time. It's also a very
expensive process internally from a training, you know, the conversion
process to a system that large has a price to pay with, [clears throat] you
know, stress and time and training and a lot of other things.
» Um, is that all baked into that 2.8 or is that the
» we've >> software hardware acquisition cost? Um
we've pl we've planned for a consultant to help us um with our selection process
as well as we have plans for a consultant that could help us with
implementation as well. So certainly we are thinking about those other costs and
the and just the amount of work um even as we plan for staffing resources,
right? We're thinking about that as well in terms of [clears throat] making sure
we have enough staff. staff are going to have to continue to do the work that
they're already doing as well as implement a new system. So, we we
definitely are um trying to plan that out and make
sure we're providing enough resources as we go through that.
» Good. I'm sure the there's there's a lot of new especially even now software is
evolving at a very fast pace, but there's a lot of new tools. So, I think
it'll be a great project and a process for the city staff to go through and and
I I'm really glad that uh city manager Lindberg hit on the benefits of this
type of thing can go beyond this building, right? Can how we connect and
how we operate transparently to the public accessibility to things. Um
that's that'll take us light years ahead of where we've been.
» Yeah, >> it's the right time to do it too when
we're doing the expansion of both >> Yes. city hall and police and all all of
that. So, >> a bigger, better, more transparent city
of >> Yeah. When you think about it in that
totality. >> Yeah.
» Yeah. >> It's this is a that's not only a big
price, that is a massive undertaking as a project,
» it is. >> Yep. It will be. And we want to make
sure we do it right >> the first time, right? And so, um, we're
being very thoughtful in planning that. Um, one of
the things with with the budget system, [laughter] our ERP system served as our
operating budget um, platform in the past and so we thought, hey, let's get
our budget system up and working and make sure that's in place before we
before we replace an ERP system because most likely most ERP systems these days
don't have their own budgeting module. So, we wanted to make sure um really the
biggest project that that we have in a year is um is taken care of first.
So, >> mayor and council, I I think that's
another really great example of staff thinking about not just effectiveness,
but efficiencies in our operation. um the the decision to to approach the
budget system first is going to set a foundation for us to make not not just
more effective decisions but more efficient decisions down the road when
it comes to the technology that we're using and integrating uh at the core of
our operations. So, uh, Jenny and Alyssa and Adam and the finance team alongside
the IT team, uh, deserve a lot of credit for thinking differently, uh, and and
not just going to market to spend $2.8 million on a, uh, on a system or a
system project, but rather really thinking about what are the operational
needs, how can we do it most effectively and most efficiently, not just for our
operation, but for the community uh, in terms of deliverables, outcomes,
results, and how much it costs. >> Yeah. And I also reading [clears throat]
in all of the information that you share with us, um the updates to the website
allows the budget to be in a way that is very
efficiently uh put out and then very readable by the
general public. >> Yep. And we're looking to make
additional advancements in that area as well. So um certainly that's exciting
» and that's addresses our transparency as well. So that's really great. Yeah.
» Um some key assumptions. This fund has historically been a challenged fund in
terms of um overall fund balance. Um there was a 12% levy increase
year-over-year in this fund. Um we increased um the the last four years
30%. Now that's 30% of what was going into the ITF fund. So then that's about
um you know 150 to 250,000 a year. Um but really you'll see when we look at
the finance plan that we did need to to make an adjustment there. Our annual
average expenditures are about $1.8 million and revenues are about 1.4 and
our levy was about $1.1 million over the five years on average. is the telephone
system that we're replacing. That's on the 26 budget, not on the 27.
[clears throat] >> Madame Mayor and council members, that's
a project that's actually moving forward currently that was approved in the 2026
budget. >> That's what I was thinking.
» Yep. And it's a it's a hosted platform. So, it's the first phone platform that
we'll be using that's cloud-based. >> Yeah.
» Um and we'll see a reduced amount of capital um replacement costs going
forward as a result of that. Yeah, that's good because I thought it was
we're looking at 27. That replacement was in the 26 budget
» and and you'll notice a dramatic increase in features.
» Absolutely. >> It's a big jump.
» Does that come with uh additional exposures to outside bad guys when we're
going to a more cloud-based system? >> The cloud-based platform that we're
actually moving forward with is a government-only cloud-based platform. as
part of our M Microsoft ecosystem through their government-only cloud
services. So there's an added layer of protection as a result of that, but
we'll treat it like any new systems and we'll continue to apply our several
multi-layered security to that platform too. um a lot of new functions and
features are are available as a result and there may be some new risks as
associated with that. But um we're taking that into consideration as we
move that project forward and it'll just become another asset that we maintain
like we do most of our IT assets today. >> I was glad we weren't on Iran's hit list
with [clears throat] the water treatment facilities. Yeah,
» even if they were, they wouldn't have gotten through.
» And because I know that we have, >> I think was 911 that we started
hardening the the um water system plant and you keep on top of that and so we
harden the uh security of that water delivery system. Well, madam members of
the council, certainly one of the investments that we've asked the
community and that you've asked the community to make uh through the ITF and
other funds I is a significant investment in cyber security. We take uh
the protection of the public's data and our infrastructure seriously. Uh Tom and
his team have done quite a bit of work in this space over the course of the
past couple of years. Maybe just by way of education for the community and the
council, Tom, can you just talk a bit about what we've studied and what we've
planned for and the current state of cyber security?
» Um, we went through a a security assessment in 2025, early 2025 as a a
follow-up to previous [clears throat] assessments that we've done um over the
year last few years. Um this one really identified um gaps which we anticipate
with any assessment that we do and areas of focus that uh we want to bring
forward um that align with our capital improvements plan and our operating
expenses. Um and that really what we're doing today and what we're asking for in
the budget going forward is a reflection of that most recent assessment from
2025. Um in addition, we're moving forward with additional managed
services. We recognize that we don't have the staffing resources to stay on
top of some of the newest risks and um items out there that are um malicious
and are constantly attacking. Um and as a result of that, you'll also see going
forward in our budget requests um additional operating expense increases
for uh additional security as a service um services um primarily through Lois,
but we're also using additional third parties. We don't um put all of our eggs
in one basket. We have a as I mentioned earlier multi-layered approach that
really is the essence of a good security plan is making sure that uh you you you
have several layers um and resources available as incidents [clears throat]
do occur and they will occur. Um our goal is to minimize the risk and
minimize the the occurrence of those incidents that occur. I remember the
consultant coming in to present the study and [snorts]
um the conclusions and what we need to do.
» So that was a good report. >> We anticipate um going through similar
assessments in the future with third parties. We also have the ability to do
self assessments. We have tools in place today that we can ask ourselves how
we're doing, score ourselves, and create metrics that help us continuously
[cough] improve our posture. >> Um, it's probably one of the most um
increasing areas of >> um time and effort from a labor
standpoint in our group right now. And that'll continue and that but that's
also why we're we're trying to address that through thirdparty services that
can help us stay on top of everything. And I'm really grateful for the work
that all of you do, especially with what happened to St. Paul and how quickly you
made sure that ours was all hardened and secured.
» How do how does a I don't want to get too far off track here, but how does a
city like Plymouth, how do how do I mean, I would imagine they have similar
resources to us um find themselves in a situation like
that. There's a lot of variables of course
between the different services that the cities provide. My understanding is um
they may not have the same involvement from their IT group in some of their
» services that they they they run. Um and it's just different set of
circumstances. I can't speak in detail what occurred at Plymouth, but um in
general, it just depends on who is leading the effort to secure systems and
platforms and how well that group may or may not be doing.
» Um we are involved in our water utility platform and have been since 2009 when
we built out that fiber optic infrastructure.
» Yeah. Um, and we continue to leverage that infrastructure along with the tools
that we've been able to bring forward over the years um to stay involved in
the security of our water utilities specifically, but we're also very
involved in a lot of the services across the organization um that touch the
city's network essentially. Um, and there may not be that same level of
involvement in other organizations. Well, it makes me feel better about
spending almost $3 million on a system knowing that [laughter]
» I would much rather security >> than
» being sorry with what happened in St. Paul and how many
» weeks that it took for them to even get back up to Yeah. And it wasn't I think
it got two months. [clears throat] >> Yeah.
» Jenny, back to you. >> All right. Well, I think Tom took care
of my last bullet point there. [laughter]
Um this is the fund. Um you do see that we do um this fund is more challenged
than our other funds at the moment. But with that additional investment, we do
get back to our targeted fund balance by 2031.
» Certainly cash flow is going to depend that we have that entire large project
in 2027. We anticipate that's probably not going to all happen in 2027. It's
going to happen over a period of a year or two, maybe maybe a little into 2029.
So, we may not see that fund balance dip as low as we're predicting. And we'll
keep an eye on that. >> We have a plan to meet,
» but we have a plan. >> Okay, good.
» So, >> because I look at that and
» and this fund it really, you know, we've been we've been ramping up those levies.
we just um added a little more in those last four years to really get us to that
to get us to that target by the end of the 5-year plan.
» Okay. >> So, the challenge would be in 27 where
it's onetime spending. >> Okay.
» Onetime spending. And then we'll look at that. We'll want to make sure we what
we'd like to do is match that levy to our, you know, match our levy to our
average expenditure so that we're generally keeping pace with the costs.
And historically in this fund, we haven't we haven't really gotten there
yet.
Um the next fund is the infrastructure trust fund. Uh major projects really are
quite simple here. Is really um the spending in this fund is really all
going to street improvements of about $4 million planned for 2027.
This fund overall um the capital the five-year capital plan increased about
36% in this fund or about nine and a half million dollars that really is
subsequent or following the um infrastructure trust funding trust fund
study and um the investment in um that five-year strategy to get our levy up to
um up to what we need to to maintain our pavement conditions.
Certainly, the levy was funded or the levy was informed by the study. 2027 did
not change. That includes a 3% increase year-over-year in that fund. And then an
average of 15% increases from 2027 through 2032.
Um, municipal state aid is also received in this project as there are some MSA
funded projects um that run through the ITF. We do have
an al we've maintained that allocation assumption at a level amount of $2.8
million a year. That's our 20 that matches our 2026 allocation. Um
MSA though is not received or recognized until we have projects um that are MSA
eligible.
We also received a we also receive a a small amount of transportation and
advancement aid. We expect about 109,000 in 2027.
Uh that program started in 2024. We received 23,000.
I think 72,000 and about 90,000 is expected this year. We don't have any
plans for additional debt in this fund. And this capital planning um here and
the projects are informed by the pavement management plan, our traffic
signal study, and our horizontal infrastructure study.
Um key assumptions here that 2027 through 2031 capital improvement plan
includes an annual average increase of $2 million in project expenditures and
that really aligns with the ITF study recommendations and funding strategy.
So with those assumptions um we do have we do have this finance plan. You can
see we are a little bit below what our target fund balance is. the um ITF study
did recommend um an increase in that kind of targeted fund balance or that
reserve in that fund. Um this this reserve is set at a certain percentage
of annual expenditures. So right now um we're we're um
recommending about $2.5 million in um in a target fund balance in this
fund. And with this plan, we're a little bit below it, but you can see in 2031,
we do get to the target. Um, we did do an additional uh bit of
work here on a on a on an option that does include um land sale proceeds. Um
current recently the city um closed on a couple of land sales surplus land sales
and there is um 2.1 million available in surplus land sale revenue in 2026. Um
staff is recommending um depositing that in the infrastructure
trust fund that would help alleviate the increase in the property tax levy over
the five years of this plan. So 3% remains the same in 2027 with 12%
increases in actually that should say 28 through 31 instead of 15% increases. So
it does reduce the property tax burden a little bit over the 5-year window about
0.25% on the total levy.
It also would ensure reserves stay above the targeted fund balance. So, um
certainly would um like the council's um feedback
on that and direction. Um but with that, this is what the difference in the um
two levies look like. It is a little bit different amount in each year, but
again, that's about 0.25% on the total levy across the five years of the plan.
and that that finance plan would look a little bit different with that um ending
fund balance being a little bit higher and then revenues are a little bit
lower. Um it just we don't have to raise revenues quite as quickly over that
5-year window. So that is an option and um wanted to show it both ways so you
had that had that perspective.
» Madame Mayor. >> Yeah. I just when we reviewed that shift
of land sale funds, I thought that was also driven by a need for increasing the
miles of road to be repaired. So, it was going to get spent, which would still
leave the fund back down, per se, unless we were layering it on top of the
existing spend. I like the plan. I'm just wondering is it is it about getting
the balance up or is it about funding it greater so we can get more roads
repaired? >> Well, the way it's um structured right
now and it could be structured differently. You could do it on top of
if you wanted to do if we wanted to do more roads sooner. It really was to ease
that property tax burden of that kind of having to really amp up that that levy.
So, was the plan with the levy pre that decision
» uh accommodating more road repairs? >> They're accommodating the same amount
scaling up or >> same amount between amount, right?
That's what I thought. But then I, you know, when when we looked at that
pavement index and the road condition and all that, it seemed like it needed a
shot in the arm to to actually net increase how many call it miles of road
each year we were repairing. >> Yeah. Yeah, council member Keely, it
really is the two options are the same amount of roads. It really is just
helping to get those reserves up earlier and
» easing that easing that levy increase a little bit.
» Yeah. >> In that four four to five year plan
» and and it directly um benefits our taxpayers.
» It does, which I I mean there's there's a lot of great benefit there. was just
trying to get back, you know, to the source, you know, how much Mark needs to
keep up with the deterioration of the roads, which means there would indicate
a net increase in roads miles repaired or feet, however you measure it, each
year, right? To start to catch up with >> correct
» the level of erosion of our roads conditions, right? Road conditions. the
first version of the plan um was based on direction after the May ITF study. So
it did give them that recommended bump up.
» And then in this version, it just allows us to do the same thing but just not
» Okay. So there is a net bump built into it, right?
» Yeah. Yep. >> Correct. So,
» madame mayor, members of the council, really the the staff recommendation here
uh is reflective of this of the council's May 2026 direction, council
member Keely that you were referencing uh which is which is all about investing
further resources into uh maintaining our streets, right? Maintaining that
core critical infrastructure. Uh so the study itself found that uh we current we
currently or at the time had invested around $3.1 million um um annually um
compared to an estimated $6 million need. So that the May direction um uh
helped to fill that gap. Then uh that otherwise without without increased
investment that happened in May would have resulted in about 11 additional
miles if memory serves >> um uh today would have gone to 40 miles
in >> Yeah.
» 10 years. >> Yeah.
» Yeah. I think that was >> in that neighborhood.
» That's what I remember. So, so that May direction does address more streets. The
options more street reconstruction and caring for more street miles and
maintaining that pavement condition index that that we identified through
the pavement management plan. >> The options in front of you today, both
the first and the second option, uh that second option really really does two
things. It reduces the cost to taxpayers >> uh by about an average annual average
impact of a quarter of a percent on the levy on the total levy a year
» um uh and repositions the fund balance to meet the policy that the council
adopted in May >> without levying additional to get there
» and the same amount of streets in each. So it is it's it has that bump of
increase that we made decision. This just helps helps buffer the cost of it.
» It just buffers that impact in those initial years
» and based on Travis's presentation at our previous meeting, maybe there's some
opportunity to buffer it even further if we can
» identify some properties. >> Yeah, DG
» more properties. Um, [clears throat] I I do like this plan, but I'm struck by the
fact this is spread out over five years at a 2.52%
decrease in the levy, which is does save our taxpayers some money. But just going
through this presentation tonight and listening to our equipment fund or
possibly some things in the parks or our our um technology that we have to do
which is a big one-time spend for us next year which would give us an
immediate impact of the overall I mean I there I think every one of them has a
need and I and I'm trying to weigh out what's going to get us the best impact
for it and over a fiveyear period of time I'm not sure we save the taxpayers
that much money per year as we would if we were to take something
like this and go into our technology and suddenly we got 2.1 million to go into
there to make some of that stuff happen. So we're not levying for that whole
thing in one year as opposed over a 5year period of time. And I and I look
at the same thing with our equipment fund as well is we're doing it in one
year instead of over a fiveyear period of time again. And so we get an
immediate impact for and I'm trying to keep my mind in one time spending mode
versus what's going to impact us most for a one-time spend
» as opposed to just peacemealing over a 5year period of time.
Um, Council Member Guffson, as we look at this, um, we were thinking about it
kind of in with that one-time funding lens and really, um, trying to figure
out what makes sense, what where could it make a difference? And part of the
doing it, part of the spreading it over five years is to really avoid any large
um dips and large increases, right? So we could certainly use it all in one
year but that also has an impact of then the the increase in the levy has to be
larger in the next year. So really trying to smooth it out over year over a
number of years and as we looked at parks and equipment and vehicle that was
also why instead of maybe taking one big increase um since we have some time and
a little bit of runway in terms of you know when when we're going to have more
challenges with our funding. wanted to start that now and maybe build it
» rather than having um just kind of rise and fall, rise and
fall. Right. >> Okay. So, that's kind of what we kept in
mind. >> Just so you know, I'm good I'm good with
every one of you, including the infrastructure, but I just want to make
sure that when we make this decision to spend this kind of money, we're what's
going to get us our best impact immediately. And you know, and I and
quite frankly, I have very very much big concerns about what's happening at the
county right now. Uh because I don't know how that's going to impact us uh
from everything I've been reading and hearing about things may get rolled down
to us where we're going to start paying picking up a lot more of the tab for
things that happen in this city that the county has been part of for us for the
time. And we got to be prepared for that. Yeah.
» And and I understand what you're what you're concerned about, but one of the
things that I have great confidence in is how we do capital improvement
planning and the things that our staff have done and and the information that
we have because ultimately
it I what we're doing here is following through with the things that we said
that we would do and how the capital improvement plan and the financial
management plan has guided us to get us to where we are. So, I have
great confidence and trust in the work that we're doing.
» You know, but it's good for us to understand what's happening at the
county, but we have no control over it. >> We don't, but we can at least prepare
ourselves for if the worst case happens. >> And I think we
» and that's >> we understand that and it will get
there. But I I want to make sure that we stay on track with the plans that we
have done and directed staff to do and um I have great confidence in the work
that has been done. >> I have confidence in our staff.
» Yeah. Yeah. Good. >> Y and um the next budget work session
we'll talk more about those overall >> Yeah.
» levy impacts, right? So we'll kind of roll everything together and you'll
» I think I'd like to hear more on that. >> Yep. So, we'll talk um all of these
changes will be rolled up and then as well as operating funds and we'll see
that total impact to the levy. But um this also allows us to have some some
fund balance to respond if there are streets or changes that um need to be
made. So, this also keeps a little bit more of a reserve in this ITF fund over
the five years. [snorts] >> Okay.
» Okay. Um the next fund is improvement
construction. This fund is related to the ITF fund but really this is our
centralized street construction fund. It really is a zero balance fund. All those
street improvement projects run through there and then are funded through um
either the ITF or um various utility funds. So there is
a generally a zero balance in this fund. Um what does stay in here or the
activity that does kind of live in this fund are the special assessment
components of the revenue and expenditures as well as any state and
federal grants for street projects. Currently we do not have grants planned
or um built into the CIP but if there are any identified those will be added
to future CIPs if that happens. So this is a little bit this isn't very
exciting but basically [laughter] revenue in equals uh revenue in equals
expenditures out. So in this fund um the street maintenance fund this uh
fund is really for kind of routine maintenance preventative roadway
maintenance um and so the m and pavement markings and rightway maintenance. So
expenditures in this fund are about $900,000 or actually 700 $7800,000
annually. Um key assumptions here the funding for
this work is um accomplished through transfers from the general fund as well
as transfers uh from the water and sewer storm water funds for to help fund that
street and their components of the street.
This fund is generally in a pretty stable situation. Revenues and
expenditures are generally balanced in this fund. Um certainly we do have about
$1.4 million um in fund balance. It is well over the
required reserve but um generally we are budgeting this in a way that is um
generally not building up a large fund balance over time but just maintaining
what we have. [snorts]
the facilities fund. Um so in this fund we have major facility projects ongoing.
Police city hall is one of those. Um the May 25th May 2025 groundbreaking
um happened with plan completion in 2028. Uh the bidday cost budget of that
uh this facility is $98 million. Capital improvement bonds of 68.6 million were
issued in May of 2025. We anticipate the second trunch of bonds being issued
before the end of the year. So, um remaining bonds we could issue up to
$31.4 million, but we're working with our financial advisor um on kind of
narrowing down what that issue amount might be as well as um kind of what the
status of the project is.
Fire station 2 that is also a large project that is included in the budget
in this fund. Um, architect and engineering design service contracts
were approved in July. Those total about $ 1.5 million. The CIP estimate of $35
million was included for 2028.
Schematic design estimates are expected by early 2027. So, we'll have some
updated cost numbers. At that time, we'll come back to the council to
discuss any additional financing and franchise fee implications.
um and those will be planned early probably um early next year.
In addition to large facility projects, we have repair and maintenance across
all facilities included in this fund. A little over $3 million was proposed for
2027. Um those investments are largely
informed by the municipal facilities inventory.
Uh, one project that isn't included yet, um, but we're working on, we do have a
public safety memorial project that hasn't yet been included in the pro post
CIP. We don't really have, um, good cost numbers, but once schematic design is in
is completed, we'll incorporate that into the CIP as well. And that would be
something um on this site kind of in conjunction with the facilities uh, the
police and city hall project. Madame Mayor, members of the council,
you you'll recall that uh throughout um uh responding to and um throughout
responding to the tragedy of February 18th, uh we've prioritized
uh taking care of our fallen families, taking care of our police and fire
departments. Um uh this is uh a project that very much is is reflective of that
commitment. Um uh so we're making some progress on a permanent public me
memorial and we also recognize that it's very important to take our time to get
it right. Uh so rather than uh suggest in this fund a placeholder for the
project, we didn't find that to be appropriate. Rather, we'll come back to
you um and discuss the cost of the project. We do expect this to be a 2027
project. Uh and uh we also do expect there to be some efficiencies and some
effectiveness found in constructing it as part of the police city hall project
uh with the sighting decision. So more to come this year.
» Okay. Now and and that's this is separate from the bridge correct
memorial >> and we don't have those numbers. Madame
Mayor, members of the council, there is included in in the CIP uh planned
numbers for a a bridge lighting project. Uh the Burnsville Parkway bridge over um
uh 35W um was recognized by the state as is the heroes memorial bridge for Paul
Matt and Adam. >> Uh this is a separate project from that.
Uh there is a a city-f funded lighting project that we plan to bring back to
you uh even as early as the next couple of weeks uh to to talk more about um uh
the anticipated cost and funding strategy for that project. But there is
currently capital funds that are planned uh for for that project.
» Okay. >> I just want people to understand these
are two different projects. There's the memorial bridge
» uh and then the heroes bridge and then this is one that's going to be here on
campus. >> Correct. We're this item is a permanent
public safety memorial uh that will be on this site or planned tenatively to be
on this site uh that we would bring back to you both from a from a funding a
project perspective sometime later this year.
» Okay. But we'll see the bridge lighting project with what that's going to look
like coming [snorts] in about what two months you say.
» Uh madame mayor, members of the council, I have a meeting with our team tomorrow
morning to talk more about the bridge lighting project and I'll have more
information then and we'll share uh more with you. Uh again, uh we we absolutely
are taking our time on these projects. Uh we want to make sure that we get it
right. uh we want to make sure that we're caring for our fallen families and
and putting those commitments and priorities first. So, uh that's been the
that's been the approach. But yes, I I expect that to come back or expect,
excuse me, the uh Heroes Memorial Bridge lighting project to come back uh for
city council discussion and direction likely before uh we talk about the
permanent public safety memorial project that that Jenny has on slide here.
» Okay.
major 2027 projects. Um outside of those major facility projects, um we do have
Ames Center theater seating scheduled. Um Ames Center upper and lower lower
lobby ceilings, so about a million $1.4 million for those
projects. HOC ramp traffic membrane, so that's about $475,000
as well as ice center main electrical switchboard and transformer. So, some
some pretty large projects in across a number of facilities.
Some key assumptions here. Utility franchise fees um fund the majority of
of the expenditures in this fund in 2027. We estimate those at about 11.3
million. Included [snorts] in the activity in
this fund are also annual facilities debt service, which is currently about
$7.5 million of that 11 um 11.3 million. And again, this does address facility
needs across the city, really throughout all all city facilities. Um the only
exceptions to that would be the utility um sites and those are funded through
the respective utility funds. Um here is the the plan for the
facilities fund. um that we do have that that hund00 million project really does
impact um the perspective of this, but we are maintaining uh a fund balance
that's above our targeted reserve um out into the future. We're not and and and
accumulating some fund balance. So, um this fund is right now functioning as
intended and we're in a in a good place here.
Um the water and sewer utility fund. So we are scheduled or we are planning to
actually separate these two funds. Um currently right now they are reported
together or co-mingled as one fund and we are in the process of making that um
separation. That'll really help ease um and help make um future rate studies and
other things much more simpler with these two funds. But um right now
they're currently together, but we do we did start with budgeting them
separately. So um the major 2027 water projects are um about a million8 in
street improvements that did increase and that increase was really due to the
funding strategy in the ITF fund. Um kind of we talked about there will be
some additional shifts >> voting is still going
» into the water and sewer fund.
Um there's a a $3 million Highway 13 frontage roads um water and water water
portion. Um that's about $3 million. That really is the work on Highway 13 um
from Savage to um I think it's Vincent Avenue. Uh well rehab of $890,000
as well as um of the roof for the Nicola reservoir.
Major sanitary sewer projects include um lift station rehab for Washburn Washurn
lift station at a million five. Um the san the sewer component of those
frontage road improvements along um highway 13 as well as lining of the
vitrified clay pipe that we have in the system at $870,000.
um key assumptions here really addressing those high criticality items
um that were in the five-year capital plan
um informed by the studies that we've done. The CIP is informed um for water
and sewer is informed by a number of studies including um the water treatment
plan assessment, hor horizontal infrastructure study as well as a fleet
study um and the ITF study even and pavement management plan. Um again this
year we've engaged elers to update the utility rate study. Last year's study
indicated um water rates would increase about 7% annually in the future or in
the 5-year plan and sewer increases would in sewer would increase 9.5% in
2027 and 4% annually thereafter. So that's kind of where we were last year
at this time. Um we do expect some in additional rate increases for imp
implementation of that utility fund integrated utility funding strategy for
street improvement. So we did you know allocate additional street improvement
cost related to the utility funds to the utility funds. So we do expect those
increases to be higher this year as we go through that study. But we'll we'll
talk about that in September and we'll present financial information for the
fund at that September fee meeting.
Storm water utility fund um major projects there again street improvements
and some um ravine restoration and slope stabilization at $550,000.
Um replacement projects of of uh storm sewer main as well as pond cleanout and
outfall improvement program. So um some routine projects, typical projects. Um
we've also engaged Ellers to update the study, utility rate study here. Um the
2026 study indicated rate increases of about four and a quarter% going forward.
Um we do anticipate an increase here as well based on the ITF study and
implementing the integrated utility funding strategy for street improvement.
So really um putting some of those storm water related
expenditures in the storm water fund. Again we'll come back with financial
information at the September fee meeting as well as present the utility rate
study at that time. Um AIM center fund this fund also has
individual um capital purchases. 560,000 is proposed in this fund for theatrical
lighting um with an LED LED conversion. Um financial information for this fund
will also be presented at the September fee meeting. Usually all the enterprise
funds are presented at that time. And with that um this is just a little
reminder of um the budget calendar and the meetings ahead. Um our next we'll
have department budget presentations next with um the proposed budget and tax
study discussion on September 8th, the remaining department presentations as
well. And then on September 15th, we'll um discuss the proposed fees as well as
the rate study and the remainder of the funds.
September 22nd, um the proposed city and EDA property tax levy is scheduled to be
adopted. We do have a discussion on the proposed budget um scheduled for
November 24th if needed and final uh city and EDA property tax levy and
budget adoption on December 8th. And with that, I'm done. I I'm complete.
That was a long presentation, I know, tonight, but um if there are any
questions, I'm here for any questions. >> You ran me out of questions. [laughter]
» Any questions? Thank you, Jenny. It's always good
to see what we're looking forward to, especially with what we remember from 26
and what we did back then. So, >> yeah. So, thank you very much.
» Great. >> Okay. With that, we'll go to department
budgets. >> I'll hand it over um to Chief Smith and
he can talk about the police department. >> Police first.
» Madame Mayor, members of the council. Yeah, they got the new guy going first.
So, we'll [laughter] see how this goes. >> Big department budget presentation.
» Uh, we'll just start with our department overview here. The Burnsville Police
Department is dedicated to strengthening our culture and delivering the highest
level of public safety service grounded in our mission and core values to ensure
procedural justice and protect the dignity dignity and sanctity of human
life.
So our investment kind of our impacts that
we're looking at really is to procure adequate resources to maintain the high
level of service that we have for the community. Uh leverage new technology
and strategies regarding violent crime reduction and ensure adequate staffing
to meet the community's needs. So these are kind of the three bullet points that
drive a big part of what our budget proposal is.
Uh achievements. I should hit the button for this one. Uh achievements and
challenges. We had about 49,000 just shy of 50,000 calls for service in 2025. Uh
we collaborated with the Bureau of Criminal Criminal Apprehensions Violent
Crime Reduction Unit. Uh that investigator actually just started on
Monday and is really excited >> to be there. So, thank you for your
investment in that. We've acquired specialized equipment for officer and
community safety. That includes two [clears throat] armored rescue vehicles,
one of which we received a few months ago and the other one we're actually
going to inspect next week and we hope to be here with by the end of the month.
So that's really exciting as well as some other uh just protective equipment.
» And your command vehicle comes when >> that will be about two years that just
got ordered I think. >> Yeah, [clears throat] because we just
approved that. >> Correct. And that the nice thing about
that there was no match. >> I would I would defer to Chief Jungman
on that but yes correct. Okay. >> Yeah there was no match.
» Excellent. >> No the uh upfitting of that was all
included. >> Madam Mayor, members of the council,
good question. Uh yes. similar to what you saw in the fleet portion of the
capital presentation tonight. That is a >> uh the cost the council has seen and is
planned in the cap is the total cost of the
» vehicle. Good. Because I wasn't quite sure when we got that grant whether that
also included the upfetting. >> Okay.
» Yeah. I think the whole thing was budgeted for and then the grant was just
going to >> when we when we applied for the grant.
» Correct. >> Okay.
Uh moving on to this page, you know, other achievements and kind of
challenges at the same time is adapting to the rapidly evolving technology to
assist in maintaining public safety. I think we're just seeing that a lot of
these technology costs are increasing quickly. Uh some of the achievements in
that area, we we have our paragon contract and we were able to purchase
two camera trailers this year that we've had out.
Um, a challenge that I know Chief Schwarz brought up, I believe during
this presentation last year, is in some of our staffing and specifically the the
span of control at the command level. Um, we have we have some captains, one
captain in particular, supervising more than what would be recommended. So,
you'll see as we move through the slides here, one [cough] of our requests for
2027 is is an additional captain position.
» Okay? And then uh again looking for innovative ways to address violent
crime. That BCA violent crime unit was was one that we've been able to start
and we continue to to look for ways to utilize technology and other strategies
to get after the violent crime. I kind of mentioned it just a minute
ago, but um one of the cost drivers is just the the cost of the technology.
More technology. We are more technologydriven and that's an area
where costs are just ever increasing. Um we need to ensure that our critical
equipment is replaced on schedule according to the expected life cycle. Um
we have some changes you'll see as we move in here. They were items that had
been in the IT budget that we've moved from the IT budget to the PD budget. So
there's an increase in the PD budget, but citywide it's it's a wash. And then
again, I believe it's on the next slide, we'll talk about the additional staffing
requests that we are requesting in the 2027 budget. [cough]
Council member Gustoson is back just in time for uh this first one.
» We have had county social workers uh a social worker working out of here.
» Yeah. >> Paid for by the county. The county did
recently ask us if we would want to do a 5050 split for 2027.
Um it's our feeling that that we would get more out of having this social work
be funded 100% by the city. >> One thing we found is that that she and
and she would apply for the job, but the count the county social worker we have
right now is pulled in a lot of different directions
» because they're a county employee and they're working out of here. So, we just
feel like if we could staff that full-time and pay for it with the city,
we would get get more out of that. >> Yeah.
» Uh the second one, this was identified in the organizational analysis from
several years ago, would be a patrol officer position. And then again, um the
captain position, which I think we've talked about over the last several
years, trying to even out a little bit of that. We we are very thankful for the
support this council and the mayor have given us with adding staff and we just
need to kind of rightsize what administration looks like to oversee
that staff that we've added. >> Question chief.
» Yes. >> How many captains do we have today?
» We have three captains today >> and you're requesting going to four.
» Yeah, >> go to four. Uh I know our neighboring
agencies Egan is up to five. uh they are lieutenants there but they're equivalent
in the there's five and Lakeville has recently gotten to five also.
» Have they also increased their >> boots on the ground patrol and sworn
officers as well? >> I don't know that answer. I just know
that they did add the the fifth position recently.
» Thank you. >> We've been we've been running very lean
and we need to make sure and Chief Schwarz had talked to us about this
two years ago. and they didn't pull the switch on it,
but now we need to do it. >> Chief, can you explain the leadership
structure of the three current captains and the deputy chief and what this does
more specifically or what the excuse me, what the addition of another patrol
captain would do to alleviate some of this the stress and well-being concerns
that we have? >> Good question. Um, Madame Mayor, members
of the council, currently our structure, we have the chief and of course the
deputy chief who assists with the day-to-day operations.
Our captains, we have one captain, and this has been this way for a while, for
several years, that oversees professional standards. So, that's all
the policy, um, hiring, sort of the personnel side
of things. We have another captain that oversees behavioral health
investigations, community engagement, and so that position, I think, has four
or five sergeants reporting to them, and typically five is about the recommended
amount of people that would report to you. The third captain has patrol
» and investig. >> We currently have nine patrol cap uh
sergeants. That person is also supervising the administrative sergeant
because there's such a nexus with patrol. So, we have one captain
overseeing 10 patrol sergeants, which in and of itself
is just too many. And I think when you add in the 24hour coverage, it just
becomes very hard to get touch points with those sergeants that that work all
these different shifts. Um and so when you talk about trying to make sure that
the sergeants get the support so that they can give proper support to the
officers so the officers can serve the community that is a a point where we
think having having another captain would allow those 10 sergeants to be
split between the two of them and they would get much better support. Uh and
where does investigation fall under? >> That is under the with behavioral health
and community engagement. >> No, that boy that
captain then has a full load also. >> He does. Yeah,
» it it at least numbers wise it's a little more appropriate how the span of
control [clears throat] lands there.
» Yeah. But the number of cases you guys work on
both now in behavioral health and also in investigation, it's a lot. And on
behavioral health, it gets more and more because of the mental health issues that
you guys are attending to. >> Madame Mayor, uh members of the council,
you are correct. There's a lot. I do think sometimes when we add to, you
know, say a patrol captain here, that that doesn't mean they're only helping
with patrol. sometimes they're going to help that's going to help
just inadvertently what else is going on in the department and vice versa. So I
think as a team effort it would allow uh the ability to spread the span of
control more evenly. >> Okay,
this next slide uh our capital improvements for 2027. We really don't
have a long list of them. We have our regularly scheduled vehicle
replacements. We are coming due to have our handguns replaced. It's been 10
years since we did that. So that would include the handguns, new sights, and
they would need to have new holsters because of they're a different
generation of of handguns and and sights. And then we put up here drone
program enhancement. We're looking to add one more drone to the fleet.
Was there a time that we also could uh apply for grants to cover some of our
handguns and long guns? >> I don't recall, Madame Mayor. I don't
recall applying for grants for handguns. We can certainly look into something
like that. I was just wondering at burn jag if we
did that uh with the burn jag grants but then you know it's been a
while since I thought about that.
» Madam mayor, members of the council certainly we we look at grant funding
opportunities and alternative sources of revenue for for this and many other uh
operational needs. Um, uh, the police department does a, uh, an excellent job
at maximizing, uh, state and federal grant
opportunities. So certainly something we'll keep our eye on into the future.
I'm not off the top of my head, I I don't recall those the specifics of
previous grant funding. >> Yeah. and I haven't seen any in a long
time. So, I was just wondering since we're looking at replacement and I saw
in Jenny's report, she had a zero in grant funding, federal grant that we
were going out for. >> Oh, that madame mayor, that was for um
trans >> for streets.
» Streets. Yep. >> Yeah, that was for streets.
» Madame Mayor, I I also don't recall if um Yeah, I just looked it up. the the
burn jag grant that we got that we most recently got was was for $20,000ish and
I think that's what we shared with Apple Valley. So
» and we and we have used that. We've earmarked that for some uses.
» Okay. But not much. >> Uh here are our major changes on the
operations side. Axiom is a forensics. It's a computer forensics program. the
Axel group. We've we've entered into our budget to refresh the the staffing study
that we did about four years ago. Now, a lot has changed in those four years. A
lot um some really great >> look at this
» time off benefits, but that is also, you know, having an effect on our schedule.
So, we just want to refresh what what our staffing looks like.
» Uh ballistic shields we have up there. There's the burn jag.
» Yeah. funding we were talking about. That's just a placeholder for the things
that we've identified. We're going to purchase the captain. We just mentioned
CEN partner fees which are now combined with the old records management system
that those went up a little bit.
DCC operating budget, you can see that went up about $76,000.
LES is a it's a collaborative incident response that that allows negotiators to
work with members of the SWAT team and others on on scenes of critical
incidents. We have some night vision goggles. The officer we talked about our
our radios. We pay a fee per radio per month to have access to the to the
actual radio system. That fee went up and so you see that there in the 2027
amount. And then the social worker that we discussed from the county,
our revenues, uh, actually you see it went up about $37,000. A big portion of
that is from adding in the reimbursement from the state for the BCA's violent
crime officer that we put there. And then there was a little bit of a change
in the insurance premium tax from the state.
And my final slide, this is just broken down by division, the the changes. Um,
I'll point out one thing. You'll see patrol went down minus 2%. That was
really uh because of some workers compensation numbers that mitigated the
increase. So, we ended up with about what is that $347,000
decrease.
Madame Mayor and members of the council, you have any questions?
» Any Yeah, DK, >> thank you, Chief. Appreciate that level
of detail, too. >> Question on the the cost of the captain.
Is that a captain's salary or is that the net effect of promoting a sergeant
and then promoting a patrolman to sergeant and then bringing on another
patrolman to kind of replace? Right. Council member Keley, that was a
captain's salary. So, it would be an additional full-time uh position.
» So, we the net ad though is promoting from within from a sergeant to go up and
then a patrol officer to a sergeant and then a new patrol officer. The does that
essentially equate to the same thing? The cost of a new patrol officer and
then those two incremental increases in existing salaries ends up being about
the same as >> what that captain's total salary is.
» Yeah. Uh, council member Keely, I think there's different ways to look at it,
but essentially the FTE we would be adding would be the
» Yeah, >> the captains, but yes, you'd be shifting
» right >> as they moved up.
» And then in addition, one more patrol officer, and that was
» just strictly boots on the ground, another patrol officer on top of what we
had added, >> correct?
» Over the last four years, I guess, or whatever it was.
» Yes. >> Okay. And madame mayor, members of the
council, just for uh clarity sake, the organizational analysis for 2027 called
for both that patrol officer position and the police captain position. You
also might recall and for the community's benefit for for those who
are watching um we've taken a new approach now with the 2027 budget and
organizational analysis getting through kind of that that uh the the four-year
plan of the original organizational analysis where we're dealing with
staffing requests based on the studies and operational plans that we do
internally. um uh and then using the budget process to determine whether or
not those identified needs would be funded uh in the in the coming operating
budgets. Kind of taking that year of a year-over-year evaluation approach over
time. So, both of those positions were identified as staffing needs in the 2027
organizational analysis. the one in the police department that wasn't is the the
question on the bringing the social worker position right into the organ.
» Can we dig into that a little deeper? What is the hourly demand based on the
history of that social worker >> like the weekly average, monthly
average, um you know based on the [clears throat]
cases that they are involved in or the circumstances that they're involved in.
Council member Keely, that's a good question. I don't have the breakdown
here. What I'm told is that we're probably getting less than a quarter of
an FTE actually going out taking calls because of the requirements at the
county level that that she's being pulled into and and asked to do and
various administrative tasks that come from the county.
» Sure. Which that was part of the thing up front, right? It was a partnership.
We're going to give you this person. Yeah.
» They weren't giving us a full-time person. They were sharing a person with
us. and >> only when they when she's available.
» Yeah. So, it makes I agree with your suggestion that we bring the person in
house, but I'm trying to get at what's the hourly demand for that person that's
driving that decision. >> You will uh council member Keely, we
will look into some of that. I do believe they gave me some items. I just
don't have it right in front of me. Can
» Can I ask a followup on what you're asking, Dan?
» Yeah. I I I guess I'm more interested in what
how often do we lose that person's services because the county pulled them
away and we actually could have used that person is probably more important
in my mind. >> Council member Gusto and I think that's
where and don't quote me on the number but what I was told was about 25% of the
time we have her here >> and so about 75% of the time she's out
doing other other tasks not >> for the county somewhere else.
» Right. Okay. >> Well, she has a case load at the county.
No, and I I get that, but I'm just saying we're losing those services for
that period of time and that we could use that person.
» Yeah, that's that's really the genesis of why I'm asking is that 75% jump
» is the whole 75% >> uh driven by demand or is it uh twice
what we have her which is that would put make it a halftime person, right? And
what does she what would we have her do in the other half of that time if the
call volume were the same going forward? >> Yeah.
» Yeah. Matt, >> Madame Mayor, members of the council, I
I think there would be work sadly there would be work for her for the full time.
Um I I mean anecdotally listening to the radio, there's no shortage of mental
health calls and >> go ahead
» madame members of the council. I think that's the probably the most important
the important point of trying to quantify this is we we believe that to
to the chief's point it's about 25% of the individual's time uh that is that is
being spent on Burnsville specific case work uh addressing mental health needs
uh and supporting the department from a uh from a crisis and uh and community
well-being uh perspective and really when you just do the simple math from
our perspective uh Although we very much appreciate the partnership of the
county, the county has funded this program for years. Uh that's been a an
important collaborative effort with the county's request uh for the city to fund
50% of that position. Uh you start getting to very small numbers in terms
of the outcome or result that the city's getting for that investment. And if
we're going to invest 50%, we believe that that really that the full
investment in bringing that in-house, much like the council and staff talked
in our most recent off-site uh annual retreat, uh has a exponentially more
significant benefit to the mental health needs of the community and of the
department moving forward. As a matter of fact, we probably could quantify
additional need beyond that when it comes to uh um our
mental health, well-being, behavioral health unit needs. [snorts]
» Can I follow up? I just >> So,
we're getting into uh just high level at this point, but sort of usage and
demand. >> Um
I uh agree 100%. no reason not to agree
that there are mental health calls coming in all the time. How would this
person cover those calls seven days a week as a full-time employee? Maybe
that's to Greg's point. There's really need for more than one, but um you know,
mental health calls aren't 9 to5, right? They're evenings, sometimes overnight,
early mornings, weekends. >> Would this person have that sort of
flexibility in that schedule as if they were brought on as a full-time employee?
Council member Keely, that's a good question. And with our behavioral health
unit, even amongst them, they work some some more flexible hours, but you're
absolutely right. We we can't cover with what we have 24 hours a day. Uh it does
allow her to be here for follow-ups, which is is helpful. Uh as luck would
have it, the very last document I looked had the information you're asking for.
Great. >> So, um this was from May. Uh but last
year she the current social worker was responsible for 468 of our 826 cases
assigned for followup. Yeah. >> So those would be cases the next day
that she could help with uh in 2026. As of that date, May 20th this year, it was
173 out of 357 calls to date. And then it was uh as I thought they they're
saying that we receive about 25% of the social workers overall work time due to
countywide obligations and staffing shortages
» and they're able to cover about half the case load it sounds like which
» from a quarter of the time. So >> well I you know I I certainly am in
support of [snorts] of of the concept. I think there's a lot to be discussed as
far as coverage. Uh so that when a call comes in, they're available because
that's why we would want to have the full-time is is to always be there when
that type of serious call comes in and we would rely on her s her or his at
some point maybe services uh to help the PD.
» Yes. And I think it's important to note, madame mayor, members of the council
that we still have access to the county's crisis line. We still utilize
dispatch takes in calls and triages them and there's a lot of calls that that do
get sent just off to Dakota's social services. So there are still
» Oh, there's like additional depth of >> resour
air to the Dakota County. I mean, I when we came up with this some years ago,
it's really nice for them to step up and say because they have those specialty
resources in their staff where we don't. Um, and it's been really a great
partnership to have that. It's what got it off the ground. It's what got us to
where we are today. It's probably time for us to take it in house.
» Yeah. >> Madam Oh, go ahead. I like the fact that
we're going to be well-rounded because we have um uh a paramedic embedded as
well. So, that helps with the medication uh aspect of when we get those calls.
And now we have a backup with a social worker that can follow up on those kinds
of calls as well because psychologically it's not when you address the issue when
it happens you're going to have followup.
» Correct. Madame Mayor, members of the council and and council member Keeler,
I'm glad you you mentioned that this is, you know, this is a
» simply an opportunity that has presented itself for us to to bring a person a a
position in house. Uh it is we are very thankful for the county's partnership
and this is in no way sort of u a negative thing. It's just an
opportunity that's presented itself. >> It's basically like a federal grant gets
us three years with an officer or firefighter and then we're on our own.
um they gave us that that grant to get us the program going.
» Yeah. So, I think we've grown big enough that we can take it from here and
appreciate their help >> because I know in the behavioral health
unit, they're always following up on these
cases until they can hand it off to a
psychologist or a psychiatrist for
meds and and followup counseling. Yeah.
that >> because I know they're always busy.
» Yeah. So, I think it's the in the right direction.
Makes us wellrounded. >> Madame Mayor, members of the council,
thank you. Yeah, >> Madame Mayor, members of the council, uh
just for for clarity sake, um from a policy direction, is the city council
supportive or comfortable of moving forward with the concept of including
» embedded social work funding in the city's budget? Uh or would you like
additional information or additional conversation?
» Are you imperative that we have that? Agreed. Okay.
» 100%. >> Unanimous.
» Yeah. >> Thank you.
» Okay. >> Yes. Madame Mayor, members of the
council, thank you. >> Okay.
» All right. I'm gonna hand it over. Are you now as we'll see?
» Okay. It's Garrett. >> Yeah, it's Garrett's turn.
» That's true. >> As we make the transition, mayor and
council again, the city obviously grateful for the county's partnership
and support and uh the social work program. And I'll make sure the county
manager knows our direction and um uh we'll keep working through the budget
process. You'll hear more about this in the operating budget presentation
that'll happen in September as well.
» Okay, Garrett, floor is yours. >> Good evening, madame mayor, members of
the council. Um, so the parks, recreation, and facilities department
includes recreation uh facilities management, which is a combination of
both our caring for our infrastructure, but it also includes the daily cleaning
and the room setups and different things like that. uh the Burns Ice Center,
Burnwood Golf Course, and our team exists to provide great spaces, places,
and activities for the community. So, some of the things going on uh in
2027, uh we have some staff reallocation,
which I'll talk about later on, uh and an overall budget reduction in the
recreation budget. Um, we, you know, in addition to the in-house work that our
team does, uh, we're constantly looking to collaborate with outside groups to
help offer programming out into the community. Um, and have a lot of, um,
engagement both with our own activities and also, you know, if there's different
projects or programs going on in our department or other departments helping
with that process as well. Um we are very close to wrapping up our recreation
services review uh and we'll be looking to implement the results of that in
2027. Um and then uh just a normal part of our
process uh we use the community feedback to help inform our programs and facility
improvements that we're doing.
As we look at Burnhamwood, um continue to see sustained growth uh in rounds and
youth participation. Um the only thing that seems to be uh looking to challenge
that would be weather. Um but we've just had some really great years of of
weather uh during the summer. And so our rounds in increasing continue to show
that as well as um it's really become a the high schools and and different youth
groups uh look to Burnhamwood to to help um run their programs and things like
that. Um we continue to transition to electric and autonomous equipment uh
which has been a great help for uh the different types of mowing and things
like that going on out at the course whether it's the uh the rough or the
fairways. uh we're now able to use that equipment uh which helps to reduce the
the staff time needs for that. Um and then uh the Burnhamwood is part of our
facility assessment study that we completed in 2024. So just uh continuing
to work on the on the course uh to implement those recommendations.
over at the ice center. Uh we a couple months ago brought on uh TJ Wheeland and
uh he is our new ice center manager. Um one of the things that uh we just
started doing uh this is the second year of doing it is the state of the ice
center where we bring in all of our legacy groups and uh talk to them about
the changes coming up at the ice center uh both within the facility but also in
the rental uses and whatnot. So really gives us a chance to understand what
their needs are early on. Uh that which helps us to understand uh what the
openings are in ice time uh so that we can uh work with uh other groups that
are not part of the legacy groups to help fill those hours as quickly as and
efficiently as possible. Um, and then one of the things TJ uh has been asked
to do in his position um is obviously come in, learn Bernzo, understand um
what we're doing and what we're doing well, but also uh start to look at
potential non ice uh and just events in on civic center property and whatnot
that can help um attract additional people to the facility and to the area.
As we look at facilities, um, uh, the police city hall phase one care, uh, we
are still on time, uh, to open this facility, uh, towards the end of
September. Uh, and we are actually, uh, going to be having someone start on
August 17th that'll be working during the day for the first time to help
clean, uh, the facility and do room setups and things like that. So that is
a a new addition um starting here later this month uh which will be extremely
important as we open up that new facility and and take care of it on a
daily basis. Uh obviously the the phase two um phasing and planning uh is a
major part of this team as we look to uh transition our police department out of
their existing space into uh new temporary spaces as we start to renovate
the the police area during phase two of the construction project. Uh our team is
also now meeting about two to three times a month uh to do the fire station
2 planning. Um there is just the general facility care of the 58 different
facilities that we have throughout the city. Um both from an infrastructure and
a a daily maintenance need. Um, and then we have [clears throat] a city hall
events manager and a facility superintendent uh that we will be uh
looking to add in 2027, which I'll talk about when we get to the staffing spot.
So, from an achievements and challenges
standpoint, um, achievement recreation services uh is almost wrapped up. The
parks wayfinding was delivered uh late last month and uh we are on schedule and
moving along well for getting the arts commission kicked off uh for a January
1st meeting for them of 2027. Uh cons continue to see a strong
facility demand at the golf course and ice center. Um, [snorts] we have a phase
one uh all the all the work that went into relocating uh city hall staff
during phase one and to deal with just the construction on the property uh to
make sure that our services to the community weren't impacted um was a a
major accomplishment for the facilities team to help pull that off. Um we are
preparing for the phase one opening and uh all the phase 2 staff relocations for
police that we talked about uh coming up. Um challenges and achievements as
the pickle ball project as we now have a a a place for that. Uh and we'll be
doing the engagement for that. Uh I want to say what is the later this week on
the 14th at Cliff End. Um and then the onboarding of an events manager and a
facility superintendent. So um will be uh something that we will need to look
at that process in 2027.
Trends and cost drivers. Uh so no different than what you'll hear for most
departments is the cost of goods and services and and inflation um obviously
is a pressure each year as we're going through the the budget. Uh over at the
Ice Center, uh for the last two years, we've benefited quite nicely from the
fact that a couple of our neighbors to the north have had major renovations to
their IC center facilities, and those are both complete now. So, um we will
most likely see a drop in revenue uh just like we saw an increase when they
were going through the process and as they return back, uh we will most likely
lose them as as our customer. And then uh the elevated uh care
standards and service needs related to police city hall. Um whether it's just
elevator contracts or uh our staff work um on the things that they'll need to do
on a daily basis, the equipment, the materials. Um what you think about the
windows and and the need to have uh contracts related to cleaning those
windows most likely a couple times a year and things like that.
So, uh, this takes us to the staffing. Um,
as I mentioned, uh, earlier, uh, we had a recreation administrative assistant,
uh, who recently retired. Um, and I'm 100% uh convinced that the most
important thing that we could have done with that position in our department was
create another facility technician position who will pretty much be
responsible about 4 hours a day during the day to help clean the facility and
go through it. Um, which you'll you see at other facilities that you go into.
Um, and then they'll also be able to help with infrastructure needs when
they're not doing that process. Um, I also know that um the initial recreation
administrative assistant helped out our rec staff quite a bit and uh they are uh
without that position anymore. Obviously, they're under more pressure
than ever to do their programming and do the things that they do, but uh
nonetheless uh absolutely the right decision to reclassify that. um the
events coordinator position in 2027. Uh what that is is we are going to be
opening up uh a new community space in February of 2028. Uh we anticipate we'll
have corporate meetings in there, weddings, uh a variety of different
activities and uh this position would help to basically manage all of those
types of rentals and preparing for that uh those types of events in the city
hall spaces. And then the uh third
» because our city hall is going to be functioning a little closer to a
community center than a city hall. I I anticipate the we will have a very wide
variety of activities for people looking to rent out those three spaces uh either
separately or when they can be opened up um and hosting, you know, over 300
people in them. So, um it's it's going to be quite different than the type of
» services and activities we have here right now.
» And we're going to need somebody who can dedicate their
» uh time and expertise to that type of activity. It's going to be very
different from any other city hall because of our engagement with the
people. >> Correct.
» Is their house. >> Mayor, mayor and council.
» Oh, >> I would
uh add to council member Schultz's comment and the mayors that when we uh
when I'm in Egan, for instance, at an event at their city hall, it's really a
community center. Um, and I'm I'm glad that we finally have a city hall
facility that meets the community's needs the way other cities around us do.
Um, and you know, I feel like we're catching up in a way because we sort of
stayed in this building a little longer than maybe we should have, but you know,
without doing an update. >> Well, Egan, when you're at their city
hall, it's a city city hall because they have a community center.
» Yes. Kind of right there. Right. It's it's where a lot of their functions
happen and it's a city facility. It's not a privately owned deal. Right.
Actually, they have two. >> That's Yes, they have two.
» I just want to say to the police, [clears throat]
» apology for the second time in 10 years displacing your entire department for a
remodel. [snorts] >> That was rough the last time. Was it 10
years ago? Nine years ago, >> 2016.
» Yeah. And and now you got to do it all over again. And I'm sure there's some
like, well, we got practice. We did it before. We can do it again.
» It'll it'll be all right. Yeah.
» Okay. Garrett. >> Then the third position up there is a
facility superintendent. That would be a new position. Um I would liken that to
we have 76 parks and we have a a park superintendent. We have all of our
recreation programs. We have a recreation superintendent. This
particular position would really be responsible for helping with the
infrastructure management of uh our 58 facilities that we have. um leading
projects, writing backgrounds, doing all those things to help manage it and
obviously work collaborative collaboratively with the different
departments that are in those facilities, but really helping to
coordinate all of that, manage the CIP, all those kinds of things. So,
» two different um roles from the park superintendent to the facilities
superintendent because we have a lot of facilities
» in our portfolio. >> Yeah. So, this person is going to be uh
overseeing all of the facilities, >> correct? Yep.
» And reporting to you, >> correct?
» Yeah. >> From a capital improvement standpoint,
um you know, similar to the parks inventory and assessment, we did a
facilities inventory and assessment. um that has been uh a great help and a
guide for us as we uh now understand what our condition one and two items
are. Uh we've assigned values to those and as we work through the CIP each year
uh we kind of label the different items uh that we're considering uh into these
four different categories. So, if it's a condition one and two, um we're still
going to if it's a if it's a life safety issue, that is the single most important
thing we need to make sure that's taken care of. Um just slightly below that is
the critical infrastructure piece. Um you know, that would be things like your
generators, um your transfer switches where if they were to fail on you, um
you could lose uh service to the facility, which would not be good for
anyone. Um, so, uh, then we start to move down to a three, which would be the
damage prevention infrastructure. So, that's your building envelope protection
type things where if you're not taking care of them, um, that may lead to
additional damage and cost to a facility. So, uh, still pretty
important. And then uh a four and things that we tend to bump at times and
evaluate, hey, can we get another year or two out of this would be things like
operational efficiency and uh just that it's indicated that it is at the end of
life, but um it's still in good working order and we could get another uh
additional amount of time out of it.
So So those were hidden, right? Is that it? So
that wraps up my presentation. I will stand for any questions or comments.
» I asked mine earlier. >> Thank you. Next one is Mark. Mark,
you're on deck.
» Actually, no, that one got snuck. >> Oh, you you forgot to give us your
» So, there are a couple more fun ones here. So,
» all right. Um >> Yeah, you forgot your budget.
» Yeah. >> Well, that's hard. Hey, I [laughter]
want to get it over to Mark. No. Um, talked a little bit about uh the
recreation uh revenues and whatnot. So, as you look on this, not a lot of change
um in AC across [clears throat] the board. Um the ice center number that you
see there is really a just a conservative reflection of the fact that
we anticipate uh we may be losing some of the ice rentals that from the fact
that our neighbors to the north are they're back up and running completely.
So uh that is what that number is for there. Uh we do have we're projecting
increases in our recreation fund and continue at the golf course just based
on trends that those continue to go higher.
Uh from an operating expense standpoint again most of the numbers are pretty
low. Uh there are two big numbers that you'll see in there. Uh one is a
negative $179,914
from recreation. uh that is a result of uh in 2026 we had the arts commission
study. So there is uh that is not part of the budget anymore because that is
complete and then it is also the uh wreck admin position is moving out of
recreation uh into facilities. So that takes us to the large number in the
facilities ma maintenance position which is moving that wreck admin position into
facility maintenance. And then it is also the addition of the facility
superintendent.
And our next slide just takes a look at um
general fund and the a 4% increase in operating expenses. Again, a lot of that
is just related to uh the the different things um you know the different cost
increases uh going on across the board uh for those different facilities. So
pretty nominal at 4%.
And now >> now
» question. >> Yes.
» Um Garrett, city manager Lindberg, what's the
tenative plans looking out beyond the remodel of uh police and city hall for
the old youth garage space or prior youth youth garage space? Do we have
conversations with anybody looking out I guess 28 forward possibly?
» Uh I guess I have a couple thoughts. Um uh the first is uh thank you for
everyone's patience. That particular facility has been instrumental in
helping us manage the transition of the phases as we u you know police is going
to be taking over a large portion of that as we go into phase two. Um but um
our our one of the next things we'll be doing in a few years is uh Mark is going
to be helping us to better understand what uh the maintenance facility needs
and uh are with the programming there um and the potential
uh how we manage all the different buildings that we're in and whatnot. So
that may have an influence on it. Um, as far as programming and whatnot, uh, we
are are ready and open to, uh, considering different groups coming in
there, uh, once we feel comfortable that we've done all the study that we need to
do. And it wouldn't, um, it would be okay to bring them in and then, uh, have
them be able to be in there for a period of time without saying, "Oh, guess what?
Sorry. Um, this isn't going to work right now." So,
» um, >> so, one last question. Uh, since the
police department's going to move in there, uh, have you put together the
police department band to play on stage [laughter] up here,
» council member Keely, I believe it's the vehicles are moving over there.
[laughter] >> And they pulled the sound system out.
» Yeah, right. >> I heard their name was the blazing
sirens.
[cough and clears throat]
» Okay. >> All right. My wife peakedked out
clearly. All right. Good evening, mayor, council members.
» Here we go. The most fun budget that you will see tonight.
» Our team. Uh, so this is really what I consider your stage crew, right? This is
the crew that works behind the scenes every day to make sure normal happens
here in the city of Burnsville. Whether it be the transportation system, safe
and reliable drinking water, conveyance of waste water, natural resources,
parks, and the engineering. One of the things that Chief Smith
brought up I think is really important to just be aware of is when you look
down our fleet sewer and um park superintendent um they oversee 13. So
our park main superintendent in our streets actually have 13 direct reports
which I think is just an interesting as you look at this structure doesn't quite
do justice to um just how impressive uh the job is and and trying to coordinate
the chaos that is dayto-day here. As I said, uh fundamentally we operate
and maintain infrastructure. We're looking at doing sustainable development
enhancements. And when I say sustainable development, that's not just like
environmentally, that's financially sustainable. And are we building with
maintenance in mind? Are we thinking about long-term cost implications of
everything that we're doing? And then really again continuing to emphasize
just enhancing the culture within the public works department. Um because at
the end of the day, our people are who take care of the community. So what are
we doing for them to best serve the community?
As we look at the the group again, we're making normal happen here in the city.
As in putting together this budget, we prioritized really those current
services and maintenance of what we have. You're going to see a lot of
investments in technology and infrastructure. And the important thing
is especially as we talk about the water treatment plant is those um projects
have to be sequenced in order to be done. And so just a ton of thought went
into what is the order to be smart in how we're making the investments to not
undo anything that was previously in the way but also deliver the critical
services that we have to do that. Uh that said our approach will continue to
mature as we continue to leverage data. So a lot of the capital studies you've
seen we've operationalized that data. We're using that to gather more data.
And so as staff gets better at at leveraging the information we're
gathering, that'll just continue to inform uh future actions.
As we talk about our achievement and challenges, um we have completed a lot
of capital studies which have been timeconuming. We are leveraging
technology to gather more useful information as I touched on. We are
expanding the use of electronic processes both internal and customerf
facing for external. Our team, I think, is definitely starting to hit their
momentum. Um, going through the different budget softwares over the last
few years. Jeff next to me is the deputy is basically our budget guru and who
knows this pretty much forwards, backwards, and inside out. Um, we made
significant gains with just improving the services to the public, but we also
acknowledge the fact the public wants more and there's a cost for that and
trying to strike that balance um will be a never- ending challenge. Then
obviously as you well know when it comes to infrastructure the cheapest thing we
can do is talk about it. When we actually start doing it it's expensive
and those costs are rising. So again I touched on we have inflation uh tariffs
have hit us on some of some of the products we use. Obviously just the
normal costs are increasing separate from inflation of just more stuff's
breaking as it gets older. Uh that's our team is definitely engaged and they have
some really good ideas and some of those ideas do come with a cost.
So, as we look at that team as a whole, we have 76 full-time staff authorized.
We currently have 74 slots filled. I want to do note we have three trainee
positions that are year round. Those are full. And then also of interest, we
actually at our peak have 65 seasonal staff that work for us at the peak of
the summer, >> which is basically an 82% increase in
the staffing during that peak time in the in the middle of summer. And so, um,
just again, kind of out of sight, out of mind, but we have a lot of people out
there every day serving the community. >> Yeah, I see them.
» Yeah, that's good. Uh, here's just a summary
of all the capital plans and studies that have been completed uh over the
last two two and a half years. So, now we're going to jump into the
budget numbers. Um, budget guru Jeff will definitely answer any detailed
questions you have. I don't know how much you may go through this line by
line or field any questions. I can kind of just go through it quick and if you
have more questions, let me know. So, increase to contracted landscaping. We
have a number of areas that are maintained in the city. Those costs are
going up. So, this is informed by literally quotes we've gotten from our
vendors. Salt material costs are going up because they have to get shipped in.
Um, irrigation systems, rebuilds and replacement, basically they have a shelf
life. They're breaking. uh the temporary and seasonal wages that
increase is to match our pay structure. So it's not a proposed increase in pay.
It's just making sure the alignment of budget and the expenses.
The contracted services actually just a range of things in support of normal
park operations. The additional three traffic signal painting is following
onto the traffic signal study. Um just trying to get caught up on some of the
uh signals that are looking a little painful out there. And then the bottom
one's a pavement management service. Basically, this is a a pavement software
that would help us dynamically plan and budget for road construction. So, right
now it's it's a time consuming process. This would very much streamline the way
we gather data, process data, and run different modeling scenarios. It also
includes actually rating of the pavement on a regular basis. So, it would there
would be an offset in costs. Mark, you know, I see a lot of seasonal
workers and you said there's 65. >> That's correct.
» And you only have 40,000
budgeted for them. >> Um, so, mayor, this question, this line
is just to address the delta between the cost that we have and making sure it's
in alignment with what we've budgeted for expense.
» Okay. It's not your >> it's not the full thing. It's just we've
looked at the historical trends. We just want to make sure that they okay
reflecting actions >> because I was thinking
65 >> employees 40,000
» didn't make the math work just the increase mayor. Yeah, because I can look
at uh at Mike and say, "How much do we pay our seasonal workers?" And he'll
say, "X." But >> think I got
» any questions on this one, >> DK?
» Um, [snorts] do we have a budget for replacing street signs where the sun has
faded them out where they're hard to read? No,
» that would just be covered under the general street budget line item
» for just the one-offs. >> Gotcha.
» Mark, can you actually It's a great story. we have a a member of the public
works team who is uniquely signed assigned to street signs. Uh maybe talk
a little bit about that and and if there are specific requests from the community
u certainly we're all ears to take those and address those issues if we miss
something. >> Sometimes I you just drive around you
see there's like I remember there's one that's it's almost unreadable now it's
bleached out so bad and I just thought I wonder how long that sign's been facing
south like maybe 30 years or 40 years. Yeah, councelor McKil. It very much
depends on the direction, right? North facing signs will last longer. Uh we do
have a staff member who generally is assigned to to sign maintenance work. So
I would say just let us know where it is. Uh caveat on that is we only
responsible for signs in the city right away. So if it's a stop sign facing
public property, that would be that property owner's responsibility to
maintain. >> So
» the street not the street sign like >> name
grocery store. >> Yeah. Yeah, under state statute, if
you're entering a road from a driveway, you have to yield the rightway. So, the
stop sign's additional. So, it' be the private business's responsibility.
» Yeah, I think there's some of those outside of Cup Foods.
[clears throat] >> Any other questions on this slide? It's
going to be hard to go back. So, okay. Um, actually Jeff, you're the resident
expert with this whole tab. So, uh, water supply plan implementation.
that's a onetime expense uh to get that into the comprehensive
plan um being included in the comprehensive plan.
And then we have a
water treatment plant condition assessment. We're going to change change
out our water meters. Um we're going to go from mechanical water meters to
digital water meters. Uh that has a small uh cost increase for us. Um
quarry sampling on the to one one time expense. Um it's used for water quality
in the quarry. Um water treatment chemicals are going up significantly.
um as we're looking to hopefully
uh being able to feed another water treatment chemical for radium reduction
in the next year. Um and then uh
yeah just uh technology for the water treatment plant. Um,
there's still some
manual processes in there where they go and do rounds, take notes, and then go
back and enter the notes. Um, this would be a technology solution to to uh get
rid of that process. Another great example of an idea coming from staff of
hey instead of writing these number down on post-it notes and giving it to this
other person to go enter it in. Can we just take a tablet enter the number the
first time then it's in the system and we don't need the multiple chances. I
think went back to the meter change. Another important thing too and Jeff
when I say this wrong feel free to correct me is right now it's a
mechanical read that'll wear out that wears out and so the new meters are a
little bit different than that with how they measure the flow. So we're hoping
to get not only quieter but also a longer life.
And Mark that's city meters >> uh in every property. Yes. City owned
meter in each property.
» Uh for the Corey sampling on that is how that information is used to inform how
we treat the water coming from the surface intake. So that's kind of the
link there to to the water people see in the homes.
Any question on the water stuff? Otherwise we have the sewer. All right.
So sewer. This is just more televising. Right back to you.
» Yep. Just uh this is just a really it's actually a shift from we break up the
city into nine sections. So we get televising on
all the city once every nine years. Um um so that's just a shift to put that in
place. Um and then Washborne Avenue Railroad
crossing. we're the railroad showed up this year and said, "Hey, this railroad
is not doing good. We need you to replace the crossing. Here's your cost."
And I said, "Well, that's not quite how that's going to work. We're going to
need to budget it in the future." And so, we were able to convince them to
push it off a year. So, basically, the city has to pay everything related to
the road crossing of the railroad track. How is it that they can come to us and
say, "Hey, this is what it costs." When we try to get them to make changes
» because they have a sign in their office that says, "First there was God and then
there was the railroad." [laughter]
» I've heard that's true. I don't know if it actually is, but
» I think that is true. >> That's the way to think about it. So,
» I tell [clears throat] you, we have tried for years and they just ignore us
and they don't care. But then they want they they say the
their railroad crossing isn't >> working and it needs repair and they're
saying we're going to pay $325,000.
» Their argument is we're the ones that need the road, not them.
» Yeah. They passed the law in the 1800s and it's been that way ever since.
» I know. I get frustrated with it, but >> you are.
» It is what it is. >> Among friends, mayor. Um, any other
questions on this slide? >> No.
» Okay. Uh from a revenue standpoint, I'm going to lead off with some really good
news. Uh while we were sitting here crunching numbers, we realized we missed
some revenue in the engineering line. So that number will not be negative
anymore. >> Yay.
» It'll [laughter] be positive. Adam's already made that change.
» Oh, yay. Adam sitting there doing that work.
» Other than that, you can see I mean it's pretty consistent with where things are
at um through there. the infrastructure
total that's a direct connection on what we do for um state state aid eligible
projects links back to what the revenue is we get from the state. So if we do
fewer state aid projects then there's a less draw from our state aid account. So
[snorts]
» okay >> operating expenses uh I'm just going to
draw your attention to the bottom which is a 2% increase. Um,
like I said, we focus on maintaining what we have and really trying not to to
change services. So, that's really what you see reflected here in the overall
account. >> There's that street maintenance account.
» Uh, that's actually back here >> different from ITF.
» Correct. So, that's this one with a 4% increase.
[clears throat] >> Oh, nope. That was revenues.
All right.
» Thank you. >> Thank you.
» Yeah. >> Nice work, Mark.
» And um >> is the sewer talibizing channel on
Comcast or is that something that we can >> Is that like the Eagle
» Cam license for the the dirty >> sanitary sewer cam?
» No, but actually in all seriousness, >> I don't know. Speaking of um [laughter]
speaking of um >> heard of sanator televising, but
[laughter] who are we televising it to?
» We have partnered with this program called sewer AI where we upload all of
our data in all of our video into the system and that helps do the condition
rating of it. It also allows our access later. So if we have a question about a
location on a pipe, we can go into the program, go back and actually pull the
video of that location. Um whether it be a question about a connection or an
issue. If there's a sewer backup, for example, we can go back and look at the
history of that section of the >> It's a recording, right? Finish that.
» Yep. >> Okay.
» You need to finish on a humorous note, don't you?
» Okay. >> And um Jeff is not here for
» for community development. And so is there anything else? Um, city manager
member, >> I don't believe so, madame mayor. We
will uh have the community development department present in September with the
rest of the departments. >> Okay. If there's nothing else to come
before the body this evening, we stand adjourned. Yay. Fortnite.