HomeMy WebLinkAbout11.18.24 Work Session
CITY OF ST. JOSEPH
www.cityofstjoseph.com
75 Callaway Street East | Saint Joseph, Minnesota 56374
Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342
St. Joseph City Council Work Session
November 18, 2024
5:00 PM
1. 2025 Budget
2. Adjourn
STAFF MEMO
Prepared by:
Lori Bartlett, Finance Director
Meeting Date:
11-18-24
☐ Consent Agenda Item
☒ Regular Agenda Item
Agenda Item #
1
Reviewed by:
Item:
2025 Proposed Budget/Levy Discussion
ACTION REQUESTED
Review proposed budget/levy changes
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Boards and Commissions presented their 2025 budget requests to the city council.
PREVIOUS COUNCIL ACTION
Council adopted preliminary budget/levy on Sept. 16th and called for the public hearing for Dec. 2nd at
6pm. Several council workshops over the summer months provided input to the 2025 budget.
REFERENCE AND BACKGROUND
The 2025 budget process started in spring 2024 with establishing the core values and priorities of the
city. Projects, membership dues, staffing and capital equipment were discussed over the last several
months. The preliminary levy was adopted on Sept. 16, 2024. The Cleargov Digital Budget Book can be
found at the following website with more detail of the 2025 budget. https://city-saint-joseph-mn-
budget-book.cleargov.com/18352
A 1% change in the tax rate is approximately $65,000 in levy.
Stearns County provided an update to the net tax capacity (market value change). In August they
estimated a 10.4% increase, used for the preliminary levy adoption. In October Stearns County moved
this down to a 7.62% increase. The result of the preliminary tax rate is 62.574%, a 3% increase in the
urban tax rate.
Included in the 2025 preliminary budget includes the following (reiterated from preliminary adoption)
with the tables updated for the tax rates based on the updated net tax capacity:
Taxes/Grants/Aids
• Local Government Aid (LGA) increased $3,045; budgeting $100,000 in Fund 110 debt
relief for small, unforeseen projects. This is an increase of $20,000 from the previous
year.
• Public Safety Aid will be spent in full in 2025
• ARPA grant finished in 2024 – used for one-time projects
• Property Tax Sharing with St. Joseph Township from the 2019 annexation agreement
was reduced $23,190 (2025 last year)
• Transportation Aid is a new State aid that began in 2024 with a partial receipt. The first
full year will be July 2025 and is estimated to be $20,000 for St. Joseph. This aid is
generated from sales tax on auto parts.
• Tax Abatements: Trobec’s and Country Manor will be at full value for tax abatements in
2025, similar to how budgeted in 2024. Hansen and Co. abatement is not projected to
start until 2026.
• TIF: The following tax increment financing projects have several years remaining:
o TIF 2-1 Millstream Shops and Lofts (2034)
o TIF 2-3 Bayou Blues and Alley Flats (2042)
o TIF 4-1 Fortitude Senior Housing (2043)
• General levies proposed to increase $435,470
• Debt levies were reviewed with Debt Management Study – increase $125,650
• Overall levy proposed to increase $561,120, 13.7%
A summary table of the proposed urban tax rate is below with an estimated 7.62% increase.
NTC $6,503,801
7.62% ↑
Adopted 2024 Levy
Urban Rates Only
Proposed 2025 Levy
Urban Rates Only
General Levy $2,103,747 34.81% $2,450,540 37.68%
Debt Levy $1,493,500 24.71% $1,619,150 24.90%
Total $3,597,247 59.53% $4,069,690 62.57%
350,000 Home $2,050 $2,096 $46 ↑
1,000,000 Business $11,459 $12,046 $587↑
Staffing/Benefits/Wages:
• No additional staff budgeted
• LELS/AFSCME contracts settled through 12/31/2025 (3rd of 3 years)
• Pay equity implementation year two, 3% general increase plus steps
• Planning Intern remained budgeted
• Increase in H SA contribution and city portion of Health Insurance per contract
• No pay increase for councilmembers/mayor per discussion at the August work session
Operations:
• Professional services: based on historical costs, anticipated projects and notification of
fee increases, the professional services budget increased. Inflation pressures were also
taken into consideration.
• Membership Dues/Community Support reviewed by city council. All proposals were left
in the preliminary budget. RSVP brought down to a maximum of $5,000.
• Sealcoating/Crack Filling budget increased. There was not a project in 2024 due to
conditions of the streets and the budget was reduced.The 2025 budget was added back.
• General liability and workers comp insurance increase based on LMC recommendations
• Interest earnings increased across the board due to current market conditions and
projected mark to market projections.
• Fee Schedule draft will be reviewed beginning with the October work session. Rates are
assumed and a draft in the preliminary 2025 budget.
Boards/Commissions:
EDA: EDA recommends continuing their initiatives to revitalize the downtown and CR75 highway
business district as well as pursuing a boutique hotel in the downtown area.
Recommends hiring Central MN Housing Partnership to apply for a MN DEED housing
rehab grant. Council approved contract at Sept. 3rd council meeting.
CVB: The CVB plans to continue with the events they have participated in including Joe Town
Block with exception of the SHRPA program. Lodging taxes are down. Reserves will
cover shortfall along with a $9,000 transfer from the EDA programming funds to cover
Joe Town Blocks. Photos and videos are not needed in 2025 so these items have been
removed from the budget. New for 2025 includes maps for trails and businesses.
Park Board: The Park Board will complete Pickleball courts in Millstream Park. The soccer goals
will be replaced and fencing replaced for the infield around softball field 2. Rivers Bend
Park phase 1 began construction in 2024, completion expected summer 2025.
Fire Dept: The area cities hired a firm to conduct a fire study with area cities. The results are
being reviewed. The 2025 budget does not reflect any changes. The Chief and Fire Chief
salary increases are included ($4,000 and $3,000, respectively). Fire calls/drill time
increases from $17/hour to $20/hour included in the preliminary 2025 budget. A $3,000
municipal contribution is included, but not required. PERA SVF participation begins in
2025 with a pension level of $3,600. The Estimated Market Value (EMV) and proposed
budget allocations follows. The final EMV will not be known until Dec. The City of St.
Joseph began realizing 100% of the EMV for the 2019 annexed properties in 2024. The
EMV allocation used is the as 2024.
Est. 2025 MV % 2025 Operations Allocation 2025 Debt Allocation
City of St. Joseph 58.12% $238,191* $42,040
St. Joseph Township 18.99% $73,627 $13,739
St. Wendell Township 22.89% $88,728 $16,557
*City covering community room and rescue van funding that the city owns outright
Capital Improvements:
To begin, the Engineer Capital Improvement Plan (CIP) has been discussed at the May council
workshop. The improvement projects identified as 2025 priorities include the projects in the table on
the following page. If council is supportive of the projects, the feasibility reports should be ordered in
soon so S.E.H. can complete their survey work before winter. This also allows the City to be on the front
of the bidding season that may bring in more favorable bids.
Note: The Hillside/Morningside Acres/Foxmore Way street improvements were pushed back to evaluate
the cause of the dimpling in the watermains. It may be added back to the 2025 street improvements.
2025 Street Overlay Improvements: map to be reviewed by council at sept. 16th work
session, trail fog seal Minnesota Street to CSAH 2
Downtown Safety: Council requested adding a budget line for intersections with the
additional retail/restaurant/beverage establishments added to downtown. Staff added 1%
tax rate to the levy for safety measures to be determined annually. For 2025, additional
lighting and sidewalk extensions may be considered for the intersection of Minnesota St W
and 2nd Ave NW with the addition of The House Food and Tap. The levy addition is $65,000.
Community Center Capital Campaign/Design can start if fundraising allows
Next Pump Station: Batzer, Northland Business Center 2, Rivers Bend, Gateway/CSAH 2
Elm St Extension / CSAH 133-Elm St Roundabout
CSAH2/Minnesota St Roundabout
SCAWAC Projects: Main Lift Station Rehab Phase II, Equip & Energy Improve projects
Proposed developments that may spur street and utility work include the following projects:
Gateway Development – CSAH 2 sewer extension/sewer lift station
Rivers Bend Development – sewer lift station, Jade Road South construction – extend utilities
The capital equipment plans (CEP) are funded annually along with two equipment certificates to offset
peaks and valleys in the equipment levies. The next equipment certificate issue is programmed for 2025.
The City usually issues the equipment certificates with the other bond issues to save on issuance costs.
The final funding levels will be determined at the time of issue. Below is a summary of the equipment
requests for each department for the 2025.
Department 2025 Capital Purchases
Administration Vehicle, Used
Administration HVAC Repairs - SJGC
Administration Welcome Sign – CSAH2
Administration Computers
EDA Business Development
Park Board Soccer Goals
Park Board Millstream Softball Field Fencing
Park Board Rivers Bend Park Phase I
Fire Computers
Fire Fire Hall Roof Replacement
Fire Air Packs/Tanks
Fire Turnout Gear
Police Squad Laptop Replacements
Police Printer Replacement
Police Squads (2)/Equipment
Public Works Seal coat/Crack fill
Public Works Pavement Mgmt Plan Updates
Public Works Transportation Plan Updates
Public Works Maintenance Truck
Public Works Scissor Lift
Public Works Sno Go Snow Blower
Public Works Plow Truck
Public Works Shop 2 Roof Replacement
Public Works Shop 2/3 Upgrades
Public Works Bike Share Bikes
Public Works Wing Deck Mower
Public Works Tandem Axle Trailer
Enterprise SCADA Software Upgrade
BUDGET IMPACT
2025 Preliminary Budget Summary
Fund Type Revenues Expenditures Surplus (Deficit) Budget
Governmental $9,514,465 $9,498,295 $16,170
Enterprise $3,840,930 $5,600,190 ($1,759,260)
Total $13,355,395 $15,098,485 ($1,743,090)
Payable 2025 Levy Summary
Urban General Levy $2,450,540 37.68% estimated
Urban Debt Levy $1,619,150 24.90% estimated
Rural Resident Levy $122,598 22.25% estimated
Rural Commercial/ Industrial Levy $466,001 62.18% estimated
Total Levy $4,658,289
Below is a summary of the area cities compared to St. Joseph residents. A couple jurisdictions indicated
they may decrease the final levies. The estimated final rates are estimates.
**Includes levy for annexed properties taxed at different rates.
A graphical summary of the area cities is below. The levies include city, county, school district,
HRA, rail authority, watershed district, metro bus as these apply to each community. Some cities
cross counties and school districts. The majority county and school district for these cities is
depicted in the graph. The tax rates do not include school districts’ voter approved
referendums. St. Cloud voters passed their public safety referendum that will increase their
levy greatly starting in 2025.
The final piece to the puzzle is the proposed 2025 fee schedule. The draft schedule was reviewed
during the Oct. 21st workshop. Please refer to the meeting notes for proposed fee changes.
Waterworth provided an overview of the water and sewer rate analysis at the Oct. workshop. The
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
St. Joseph Sauk Rapids Sartell St. Cloud Waite Park Average
125.0%
112.9%113.7%115.6%
157.1%
124.9%
Preliminary 2025 Area City Tax Rate Comparison
Includes County, School District, City Levies
Jurisdiction
Final 2024
Levy**
2024 Final
Tax Rate
Preliminary
2025 Levy**
2025
Preliminary
Tax Rate
TMV
Increase
% Levy
Change
City of St. Joseph $4,097,169 59.53% $4,658,289 62.57% 7.62% 13.7%
Stearns County $93,112,235 40.10% $96,965,599 39.88% 4.68% 4.1%
ISD 742 – St. Cloud Schools $34,05,566 21.30% $35,290,109 22.59% 3.6%
Sauk River Watershed District $1,288,279 0.91% $1,220,004 0.90% -5.3%
St. Cloud HRA $714,000 0.26% $725,000 0.26% 1.5%
City of Sauk Rapids $5,849,400 38.30% $6,387,100 42.36% -1.27% 9.2%
City of Sartell $10,103,000 41.65% $10,421,500 41.56% 3.15% 3.2%
City of St. Cloud $39,375,600 53.17% $39,573,400 53.17% 1.34% 0.5%
City of Waite Park $10,866,317 82.39% $12,172,933 94.59% 5.94% 12.0%
table below shows the effects of the utility rate history and proposed 2025 and 2026 rates for a
residential, multi-family and commercial property.
Bi-Monthly Bill - 60 gal cart, 3/4" meter Adopted Adopted Adopted Adopted Adopted Proposed Projected
Effect on SF avg user - 12,000 gallons 2020 2021 2022 2023 2024 2025 2026
Water 86.22 87.42 88.62 90.42 92.02 94.30 96.62
Sewer 109.60 107.20 107.20 109.36 119.20 125.16 128.25
Storm Water 10.00 12.40 14.00 14.00 14.00 14.00 14.50
Refuse 19.76 21.07 22.50 26.34 40.61 41.16 45.00
Recycling 12.00 15.20 15.80 17.50 12.00 12.00 13.00
Street Lights 4.80 4.80 4.80 4.80 4.80 4.80 6.00
242.38 248.09 252.92 262.42 282.63 291.42 303.37
5.72 4.83 9.50 20.21 8.79 11.95
Bi-Monthly Bill - 1 BAC, 1.5" meter 2.36% 1.95% 3.76% 7.70% 3.11% 4.10%
Effect on Comm user - 60,000 gallons
Water 353.55 360.01 366.47 484.86 488.09 500.35 512.84
Sewer 412.00 400.00 400.00 551.80 596.00 625.80 641.25
Storm Water 42.30 52.46 59.22 59.22 59.22 59.22 61.34
Street Lights 4.80 4.80 4.80 4.80 4.80 4.80 6.00
812.65 817.27 830.49 1,100.68 1,148.11 1,190.17 1,221.43
4.62 13.22 270.19 47.43 42.07 31.25
0.57% 1.62% 32.53% 4.31% 3.66% 2.63%
Bi-Monthly Bill - 1.68 BAC, 2" meter
Effect on 60 unit MF user - 335,000 gallons
Water 3,133.37 3,166.87 3,200.37 2,010.62 2,027.37 2,079.07 2,131.09
Sewer 4,150.50 4,083.50 4,083.50 2,383.80 2,531.00 2,657.55 2,722.90
Storm Water 45.70 56.65 63.97 63.97 63.97 63.97 66.26
Street Lights 240.00 240.00 240.00 240.00 240.00 240.00 300.00
7,569.57 7,547.02 7,587.84 4,698.39 4,862.34 5,040.59 5,220.25
(22.55) 40.82 (2,889.45) 163.95 178.25 179.66
-0.30% 0.54% -38.08% 3.49% 3.67% 3.56%
Below is a comparison of where the area cities are for utility rates for 2025. A couple cities are still
estimating their 2025 fees and presenting to their councils for the first time.
St.
Joseph
Bi-Monthly
Bill Effect
St.
Joseph Proposed Sartell
Sauk
Rapids
Waite
Park St. Cloud Foley St. Augusta
on SF avg
user -
12,000 gal 2024 2025 Proposed
2025 2024 2024
Proposed
2025 25 Proposed 2025
Water
92.02
94.30
66.99
68.00
86.22
74.62
92.82
125.86
Sewer
110.36
119.20
130.31
85.33
83.73
78.40
308.40
127.78
Storm
Water
14.00
14.00
16.50
11.50
4.00
17.60
2.00
4.80
Street
Light
Utility
4.80
4.80
-
9.00
-
7.60 -
4.00
202.38
213.50
197.30
153.33
169.95
153.02
401.22
253.64
WAC
3,500.00
2,750.00
3,821.00
2,100.00
1,500.00
3,100.00
1,500.00
3,000.00
Water
Trunk
150.00
150.00
2,546.00
5,648.00
-
2,500.00
630.00
-
SAC
2,500.00
2,750.00
3,075.00
2,700.00
1,500.00
3,100.00
1,200.00
3,000.00
Sewer
Trunk
350.00
350.00
2,546.00
2,892.00
-
2,000.00
1,300.00
525.00
Multi
Family
Discount yes yes no yes no yes no no
BUDGET IMPACT
Review only
STAFF RECOMMENDED ACTION
Consider the 2025 budget/levy and provide direction for the Dec. 2nd public hearing.
SUPPORTING DATA/ATTACHMENTS
Memo Only
City of St. Joseph, Minnesota
2025 Net Tax Capacity - Urban Properties
Draft Final as of October 4, 2024
Net Tax Capacity 6,043,056 6,503,801 (Stearns County Estimated)
2024 2025
2025 Levy Limit n/a 9.22% 7.62%
TAGS 8402,8403 TAGS 8402,8403 T
Mill Rate
Levy Levy Change
General Fund Levy 1,960,972 32.4500% 2,145,840 32.9936%0.544%
Retirement Reserve 14,590 0.2414% 15,000 0.2306%-0.011%
Fire Fund 214,045 3.5420% 240,855 3.7033%0.161%
Country Manor's Abate - EDA 31,000 0.5130% 32,000 0.4920%-0.021%
Trobec's Abate- EDA 104,094 1.7225% 100,000 1.5376%-0.185%
EDA Levy 85,976 1.4227% 99,710 1.5331%0.110%
Park Dedication Fund 50,000 0.8274% 50,000 0.7688%-0.059%
General Equip Fund 109 88,070 1.4574% 212,135 3.2617%1.804%
sales tax abatement (445,000) -7.3638%(445,000) -6.8422% 0.522%
Bond 2016 185,000 3.0614% 230,000 3.5364%0.475%
Bond 2019 70,000 1.1584% 80,000 1.2300%0.072%
Bond 2020 320,500 5.3036% 271,500 4.1745%-1.129%
Bond 2021 125,000 2.0685% 125,000 1.9220%-0.147%
Bond 2022 538,000 8.9028% 542,040 8.3342%-0.569%
Bond 2023 255,000 4.2197% 265,000 4.0745%-0.145%
Bond 2024 - 0.0000% 105,610 1.6238%1.624%
3,597,247 4,069,690 0.703%
4,097,169 59.5270% 4,658,289 62.5740%debt levy
w/OAA Properties w/OAA Properties
Operational Urban Levy % Change 24 to 25 13.6%Urban Mill Rate Chg 3.047%
Operational Urban Levy $ Change 24 to 25 346,793$ Urban Levy Change 472,443$
Debt Urban Levy % Change 24 to 25 8.4%Levy % Change 13.1%
Debt Urban Levy $ Change 24 to 25 125,650$ Overall Levy Change 561,120 13.7%
2024 Net Tax 2024 Tax 2025 Net Tax 2025 Tax
Impact Analysis Capacity Impact Capacity Impact 435,470
150,000 Homestead 1263 751.83 1,170 732.12 3,039,139
In(de)crease in taxes -2.6% (19.71) 2,603,669
175,000 Homestead 1534 913.14 1,442 902.32
In(de)crease in taxes -1% (10.83) 16.73%
200,000 Homestead 1808 1,076.25 1,715 1,073.14
In(de)crease in taxes -0.3% (3.10)
250,000 Homestead 2353 1,400.67 2,260 1,414.17
In(de)crease in taxes 1.0% 13.50
280,000 Homestead 2680 1,595.32 2,587 1,618.79
In(de)crease in taxes 1.5% 23.47
300,000 Homestead 2898 1,725.09 2,805 1,755.20
In(de)crease in taxes 1.7% 30.11
350,000 Homestead 3443 2,049.51 3,350 2,096.23
In(de)crease in taxes 2.3% 46.72
400,000 Homestead 3988 2,373.93 3,895 2,437.26
In(de)crease in taxes 2.7% 63.32
250,000 Business 4,250 2,529.90 4,250 2,659.40
In(de)crease in taxes 5.1% 129.50
500,000 Business 9,250 5,506.24 9,250 5,788.10
In(de)crease in taxes 5.1% 281.85
750,000 Business 14,250 8,482.59 14,250 8,916.80
In(de)crease in taxes 5.1% 434.21
1,000,000 Business 19,250 11,458.94 19,250 12,045.50
In(de)crease in taxes 5.1% 586.56
$1 M 20 Unit Apt.12,500 7,440.87 12,500 7,821.75
In(de)crease in taxes 5.1% 380.88
Tax Capacity rate change by 1% 65,000$
Estimated Property Tax Impact of the 2025 Urban Levy Budget
Draft Urban 2025Adopted Urban 2024
City of St. Joseph, Minnesota
2025 Net Tax Capacity - Rural OAA Properties
Draft Final as of October 4, 2024
Net Tax Capacity 517,529 551,005 702,244 749,428 (Stearns County Est.)
2024 6.47%2025 2024 6.72%2025
2025 Levy Limit n/a rural rural comm/ind comm/ind
TAG 8404,8406 TAG 8404,8406 TAG 8405,8407 TAG 8405,8407
Rural Residential Levy Rural Residential Levy OAA Comm/Ind Levy OAA Comm/Ind Levy
General Fund Levy 109,540 21.1660% 122,598 22.2499% 390,382 55.5910% 466,001 62.1809%
109,540 122,598 390,382 466,001
21.1660% 22.2499% 55.591% 62.181%
increase 24 to 25 13,058 increase 24 to 25 75,619
11.92%1.08%19.37%6.59%
2024 Net Tax 2024 Tax 2025 Net Tax 2025 Tax
Impact Analysis Capacity Impact Capacity Impact do not go over 62.1809% C/I for 2025
150,000 Homestead 1263 267.33 1,170 260.32
In(de)crease in taxes -2.6% (7.00)
175,000 Homestead 1534 324.69 1,442 320.84
In(de)crease in taxes -1% (3.84)
200,000 Homestead 1808 382.68 1,715 381.59
In(de)crease in taxes -0.3% (1.10)
250,000 Homestead 2353 498.04 2,260 502.85
In(de)crease in taxes 1.0% 4.81
280,000 Homestead 2680 567.25 2,587 575.60
In(de)crease in taxes 1.5% 8.36
300,000 Homestead 2898 613.39 2,805 624.11
In(de)crease in taxes 1.7% 10.72
350,000 Homestead 3443 728.75 3,350 745.37
In(de)crease in taxes 2.3% 16.63
400,000 Homestead 3988 844.10 3,895 866.63 2024 Net Tax 2024 Tax 2025 Net Tax 2025 Tax
In(de)crease in taxes 2.7% 22.53 Capacity Impact Capacity Impact
250,000 Business 4,250 2,362.62 4,250 2,642.69
In(de)crease in taxes 11.9% 280.07
500,000 Business 9,250 5,142.17 9,250 5,751.73
In(de)crease in taxes 11.9% 609.57
750,000 Business 14,250 7,921.72 14,250 8,860.78
In(de)crease in taxes 11.9% 939.06
1,000,000 Business 19,250 10,701.27 19,250 11,969.82
In(de)crease in taxes 11.9%1,268.56
Estimated Property Tax Impact of the 2025 Rural Levy Budget
Adopted 2024Adopted 2024 Draft 2025 Draft 2025