►
From YouTube: September 13, 2021 Budget Committee
Description
Additional information at
https://lims.minneapolismn.gov
C
Good
afternoon
my
name
is
lenny
palmisano,
I'm
the
chair
of
the
budget
committee
and
I'm
going
to
call
to
order
this
regular
committee
meeting
for
monday
september
13th.
I'd
like
to
note
for
the
record.
This
meeting
has
remote
participation
by
council
members
and
city
staff
as
authorized
under
minnesota,
open
meeting
law,
section
13
d
.021
due
to
the
declared
state
of
local
public
health
emergency.
I
will
also
note
that
the
city
will
be
recording
and
posting
this
meeting
to
the
city's
website
and
youtube
channels
as
a
means
of
increasing
public
access
and
transparency.
C
C
C
D
C
C
Goodman
jenkins,
chair
palmisano
present,
there
are
10
members
present.
Thank
you.
Let
the
record
reflect
that
we
have
a
quorum.
I
understand
that
council
member
goodman
will
be
joining
us
shortly
by
phone.
Colleagues
today
begins
the
budget
committee's
work
on
the
city's
2022
budget.
We
have
two
receive
and
file
items
today.
Item
number
one
is
our
formal
receipt
of
the
mayor's
2022
recommended
budget,
which
was
referred
to
us
by
the
city
council.
Item
number.
C
Two
is
the
overview
of
that
budget
that
will
be
presented
to
us
by
the
budget
office
after
we
dispense
with
the
presentation
and
discussion
I'll
lay
out
our
schedule
going
forward
to
consider
an
amanda
mayor,
fry's
budget
proposal
and
first
I
will
invite
amelia
kruever
our
city's
budget
director
to
beginner
in
an
overview
of
of
the
22
2022
budget.
Welcome
director
kruver.
E
Thank
you
so
much
chair,
palmisano,
I'm
going
to
be
joined
today
by
rebecca
malmquist
to
help
us
explain
a
little
bit
more
about
what's
happening
with
our
property
tax
base,
as
well
as
robert
harrison
from
my
office
go
ahead
and
go
to
the
next
slide.
E
So
today,
we'll
start
off
with
a
high
level
overview
of
the
budget,
we'll
move
into
the
process
for
putting
together
that
budget,
starting
with
the
current
service
level,
then
we'll
talk
in
depth
about
the
general
fund,
moving
on
to
the
proposed
levy,
the
impacts
of
that
levy
and
then
we'll
talk
a
little
bit
about
all
of
the
other
components
of
the
complete
levy
picture
in
minneapolis
and
then
end
with
a
brief
overview
of
the
coming
departmental,
deep
dive
presentations
that
will
be
happening
over
september
and
could
go
to
the
next
slide.
E
Thank
you.
So,
at
a
really
high
level,
the
the
mayor's
recommended
budget
includes
1.6
billion
dollars
in
spending,
and
this
graph
in
front
of
you
just
shows
the
groupings
by
the
fund.
So
you'll
see
the
general
fund
is
34
of
our
overall
budget.
The
rest
of
the
budget
is
utility
funds,
our
capital
program,
some
special
revenue
funds,
as
well
as
our
debt
service.
So
the
overall
spending
this
year
is
growing
by
about
eight
percent
in
the
mayor's
recommended
budget,
go
ahead
and
go
to
the
next
slide.
E
So
revenues
are
also
growing
by
about
seven
percent
in
the
high
level
all
funds
budget
you'll
see.
The
makeup
is
very
similar.
34
of
all
our
revenues
are
in
the
general
fund
and
they
are
growing
again
by
seven
percent
from
last
year's.
Overall
revenue
budget
go
ahead
and
go
to
the
next
slide.
E
So
now
we're
we're
going
to
get
into
the
budget
process
and
talk
about
how
we
got
to
the
mayor's
recommended
budget
and
what's
next
so
go
ahead
and
go
to
the
next
slide.
Thank
you.
E
So
the
process
for
setting
the
budget
in
the
city
of
minneapolis
starts
with
the
creation
of
the
current
service
level,
and
this
is
essentially
our
starting
point
for
budgeting.
This
is
where
we
take
the
the
people
and
the
programs
that
were
approved
by
council
in
last
year's
adopted
budget
and
push
them
forward
into
the
next
year,
and
that
includes
increasing
personnel
budgets
for
planned
increases
to
medical
and
dental,
as
well
as
any
contractual
increases
like
across
the
board
or
cost
of
living
increases
for
bargaining
units.
E
go
ahead
and
go
to
the
next
slide.
I
want
to
talk
a
little
bit
about
the
starting
point
for
this
year,
so
the
slide
in
front
of
you,
the
green
bars,
are
showing
revenues
and
the
sort
of
peachy
bars
are
showing
expenses
the
first
two
years,
2019
and
2020.
Those
are
showing
actuals
in
the
general
fund,
so
you
can
see
that
revenues
are
higher
than
expenses.
E
That
means
we
ended
those
years
collecting
more
revenue
than
we
spent
in
2022
the
first
year
that
we
really
were
faced
with
or
sorry
in
2021,
the
first
year
where
we
were
budgeting
under
the
financial
constraints
brought
on
by
the
coronavirus
pandemic.
E
We
used
a
little
bit
of
fun
balance
as
well
as
reduced
budgets
across
the
board
in
all
departments
to
to
make
ends
meet.
So
the
2021
budget
is
showing
expenses
slightly
higher
than
revenues
because
of
that
small
use
of
fund
balance
in
the
general
fund
in
2022
we're
looking
at
just
the
current
service
level.
So
before
any
change
items
were
applied
or
additional
investments
considered.
We
were
faced
with
a
substantial
deficit
about
26
million
dollars
in
the
general
fund,
and
this
is
due
to
expenses
rising
faster
than
revenues
in
our
base
budget.
E
So
when
we
price
out
sort
of
that
base
budget,
the
people
on
the
programs
that
were
approved
in
last
year's
budget
general
fund
expenses
are
growing
faster
moving
into
2022
than
in
previous
years.
Those
are
driven
by
three
primary
things.
The
first
is
fringe
benefits,
particularly
when
we're
looking
at
workers
comp,
as
well
as
something
we
call
duty,
disability.
So
I'll
talk
about
those
real,
quick,
so
workers
comp.
We
are
self-insured
in
the
city
of
minneapolis
and
workers.
E
and
so
you'll
see
that
increase
primarily
in
the
mpd
budget,
as
well
as
in
the
fire
budget,
because
those
are
the
departments
that
are
seeing
higher
expenditures
out
of
driving
the
higher
expenditures
out
of
the
workers
comp
fund.
So
those
fringe
benefits
are
increasing
faster
this
year
than
in
typical
years.
E
So,
in
order
to
make
sure
that
the
self-insurance
fund
and
in
particularly
the
workers
comp
fund
and
the
general
liability
fund,
that
they
are
healthy
and
able
to
make
the
expected
payments
in
2022,
we
are
making
a
one-time
transfer
from
the
general
fund
into
the
self-insurance
fund,
12
million
dollars
to
the
workers,
comp
fund
and
12
million
dollars
to
the
general
liability
fund,
to
make
sure
that
those
funds
are
short
up
and
can
make
the
payments
that
we
expect
to
see
in
the
remainder
of
21
and
in
2022..
E
E
The
third
thing
is,
there
are
some
expenses
that
are
shifted
onto
the
general
fund
this
year,
so
in
2020
one
in
this
budget
year
we
are
funding
our
neighborhood
and
community
relations
program
entirely
out
of
a
special
revenue
fund
and
that's
being
supported
by
the
consolidated
tif
district,
that
tif
district
went
away
last
year,
and
so
in
2022.
We
need
to
move
those
operating
expenses
onto
the
general
fund
so
that
that's
a
larger
than
normal
increase
in
spending.
In
the
general
fund,
and
then
the
the
other
shift
is
the
civil
depart.
E
Civil
division
of
the
city
attorney's
office
is
also
moving
out
of
the
self-insurance
fund,
which
is
where
they
were
accounted
for
last
year
into
the
general
fund,
just
to
align
with
best
practices
and
operating
charges
into
our
general
fund,
and
so
I
will
I'll
pause
right
here.
It
looks
like
there
might
be
a
question.
Thank
you.
B
And
thank
you
for
this.
We
get
a
lot
of
questions
about
how
we're
accounting
for
both
the
settlements
and
there's
been
a
lot
of
interest
in
the
workers
comp.
So
you
know
workers,
comp
settlements
and
other
legal
settlements,
and
so
the
way
this
is
going
to
show
up
in
the
budget
is
not
going
to
be
attributed
to
departments.
B
And
I
think
it's
important
for
the
public
to
understand,
and
I
want
to
make
sure
I'm
describing
it
accurately
that
it's,
for
example,
the
workers
comp
settlements
related
to
mpd
are
not
going
to
show
up
as
mpd
on
the
budget
line.
They're
going
to
show
up
as
a
single
transfer
from
the
general
fund
lumped
in
with
a
lot
of
other
items
into
the
self-insurance
fund.
E
There
will
be
this
one-time
transfer
sort
of
to
shore
up
the
fund
and
make
sure
it's
healthy,
but
there
will
also
be
the
increase
in
just
the
what
will
show
up
as
fringe
benefits
in
all
departments.
Those
are
also
increasing.
So
there
will
be
a
small
increase
to
mpd's
budget.
That's
about
seven
million
dollars,
I
believe,
related
to
their
contribution
to
the
workers
comp
fund.
E
C
As
we
are
going
through
some
things,
some
people
are
tuning
in
or
joining
us
just
running
from
different
meetings.
I'd
like
to
confirm
three
other
council
members
attendance
on
this
call
council
vice
president
jenkins.
I
understand
you're
present
with
us
now.
Could
you
vocalize.
F
Thanks,
madam
chair,
just
picking
up
off
council
member
fletcher's
question,
I
just
want
to
make
sure
again.
I
also
get
a
lot
of
questions
about
this
issue.
Okay,
so
if
so,
we're
going
to
see
increases
in
fringe
benefits
in
all
city
departments
or
in
some
city
departments,
and
will
those
fringe
benefit
changes
reflect
things
that
are
happening
in
specific
departments
or
is
it
equal
across
the
board,
as
as
a
sort
of
net
increase
to
the
insurance.
E
E
E
So
so
departments
are
seeing
increases,
but
that's
sort
of
the
regular
what
you
would
see
in
any
sort
of
annual
increase
according
to
like
sort
of
cost
of
living
stuff.
The
departments
that
are
seeing
larger
increases
that
is
being
driven
by
the
actual
activity
in
the
fund.
F
F
E
A
great
question
council
president
bender
and
chair
palmisano,
I,
the
the
transfers,
are
sort
of
a
one-time
requirement
to
make
sure
that
we
have
cash
flow
in
that
fund
to
meet
the
payments
that
we
expect
to
come
in
at
the
end
of
this
year
and
in
2022..
E
So
the
settlements
that
we're
seeing
come
in
are
pretty
hard
to
time
right
and
we
want
to
make
sure
that
the
fund
is
in
a
place
to
make
the
payments
as
they
come
through.
So
it's
really
kind
of
a
one-time
infusion
of
cash
to
make
sure
that
we
can
meet
the
needs
that
are
coming
in
in
the
near
terms
or
the
next
six
months
in
the
next
year.
F
F
E
Thank
you
so
much
chair,
palmisano,
the
last
thing
I'll
say
about
expenditures
in
the
current
service
level,
is
that
sort
of,
in
addition
to
personnel
costs
and
non-personnel
costs
things
like
contracts
and
or
program
dollars.
E
E
So
from
a
big
picture.
General
fund
revenues,
aside
from
our
levy,
are
growing
slower
than
pre-pandemic
levels
into
2022.,
so
starting
with
business
license
revenue.
That's
projected
to
be
about
6
million
dollars,
so
that
is
a
45
percent
increase
above
2020,
which
is
really
the
low
point,
but
still
well
below
our
2019
revenues,
which
we
would
see
in
a
typical
year.
We
are
expecting
those
to
increase,
particularly
due
to
the
strong
investments
made
via
round
one
of
our
american
rescue
plan
act
spending,
but
to
be
conservative.
E
E
So
we
are
seeing
positive
growth,
we're
expecting
positive
growth
still
but
slower
than
what
we
saw
before
the
pandemic
hit
and
then
the
last
revenue
source
sales
tax
receipts
have
been
the
most
impacted
by
the
pandemic.
E
Our
projections
in
our
2022
budget,
as
well
as
in
our
five-year
outlook,
are
showing
strong
recovery
but
remaining
below
pre-pandemic
levels
into
2024.,
so
in
in
2020
mid-year,
when
we
needed
to
start
making
much
more
targeted
projections
for
sales
taxes
and
then
in
2021,
we've
followed
a
similar
sort
of
methodology
where
we've
gamed
out
a
middle
case
scenario
in
a
worst
case
scenario,
and
so
we've
found
and
we've
been
able
to
adjust
back
and
forth
based
on
actual
scenarios.
E
What
we
found
in
the
last
two
years
that
receipts
have
come
in
slightly
above
our
budgeted
estimates
for
those
sales
tax
revenues.
So
we
feel
strongly
that
the
estimates
we
have
are
conservative
but
but
accurate
as
accurate
as
we've
been
able
to
to
manage
in
the
last
two
years.
So
we're
expecting
to
see
a
growth
by
about
19
into
2022
and
then,
like
I
said,
steady
growth
returning
to
pre-pandemic
levels
in
2024.
C
C
There
we
go
as
the
lights
go
out
on
you,
council,
member
fletcher.
If
there's
a
question
or
comment.
B
Sure,
thank
you
I'll.
Just
raise
a
question
that
I
know
we
had
some
discussion
about
in
bet
and
I
think
everybody's
been
sort
of
wondering
about
you
know
how
conservative
are
these
revenue
estimates
and
do
we
have
a
sense
of
if
the
delta
variant
changes
those
projections
as
things
that
seemed
like
they
were
opening
up,
might
be
pulling
back
on
that
activity
and
when
would
we
know
if
we're
changing
our
projections?
B
At
what
point
do
we
get
data
that'll
help
inform
this
budget
process
if,
if
we
think
that
what's
happening
in
the
fall
might
sort
of
dampen
our
sales
tax
revenue
estimates.
E
Thank
you,
troop
homizano
and
councilmember
fletcher.
So
it's
a
great
question
and
learning
how
to
forecast
sales
tax
revenues
in
minneapolis
is
something
that
we've
had
to
pick
up
quickly
in
the
last
year,
and
I
could
talk
a
little
bit
about
what
we've
used
to
drive
those
forecasts
so
in
starting
in
last
year,
we
started
looking
for
things
that
we
could
use
pieces
of
data
that
we
could
use
to
sort
of
peg
our
recovery
to
we've
used
things
like
the
state
growth
rate.
E
How
is
the
state
expecting
sales
taxes
to
recover,
and
how
can
we
modify
that
to
think
about
how
minneapolis
might
recover
this
year
we
started
or
this
year
in
order
to
forecast
into
next
year,
we've
started
to
use
additional
sources.
We've
used
forecasts
from
american
hotel
and
lodging
associations,
so
trade
organizations
that
really
focus
on
the
tourism
industry,
in
particular,
using
that
input
to
adjust
our
projections.
E
We've
also
been
taking
a
look
at
actuals,
so
every
month
we
get
information
about
what
the
the
real
sales
taxes
coming
into
the
city.
Look
like
it's
important
to
note
that
those
are
about
two
months
delayed
because
they
are
the
sales
tax
is
generated,
the
department
of
revenue
collects
it,
and
then
it
gets
receipted
back
to
us.
So
we
are
working
with
a
bit
of
a
lag,
so
we
are
looking
at
those
as
they
come
in
we're
working
with
our
partners
in
the
controller's
office
to
compare
to
prior
years.
E
We
are
discussing
amongst
finance
what
it's
looking
like
and
consistently
like.
I
said
this
year
as
well
as
at
the
end
of
the
year
in
2020,
we've
been
we've
come
in
a
couple
million
over
our
projections,
so
we
feel
good
about
that.
So
far,
I
think,
to
address
the
second
part
of
your
question
is
what
do
we
do
when
if
things
start
coming
in
far
below,
and
so
we
have
some
levers
to
pull
before,
there
is
an
impact
on
the
general
fund.
E
If
sales
taxes
do
fall
significantly
off
the
sort
of
trend
that
they're
on
and
sales
taxes,
starting
in,
I
believe
about,
2017
are
deposited
into
our
downtown
assets
fund.
E
We
still
have
fund
balance
in
that
fund
that
could
be
spent
before
we
get
to
changing
our
transfer
assumptions.
There
are
capital
needs
that
if
we
are
in
a
real
hard,
pinch
could
be
deferred
by
a
year
or
two
again
without
disrupting
you
know,
operations
or
transfers
to
the
general
fund.
So
there
are,
I
think,
conservative
estimates
included
in
this
budget
and
there
are
also
some
levers
that
we
can
pull.
E
Should
we
fall
below
our
expected
revenues
before
we
need
to
start
doing
the
kind
of
sort
of
emergency
budgeting
that
we
were
forced
to
do
in
2022
or
2020.
E
All
right,
so
I
will
I'll
move
into
talking
a
little
bit
about
the
mayor's
recommended
general
fund
budget
go
ahead
and
go
to
the
next
slide.
Thank
you.
So
we
started
talking
about
the
current
service
level
and
the
deficit.
That
was
the
starting
point
for
the
2022
budget.
E
This
slide
really
lays
out
the
fund
balance
for
the
general
fund,
the
expenditures
and
the
revenues
showing
how
they
tie
out
and
we'll
spend
the
next
couple
slides
talking
about
the
levers
that
the
mayor
pulls
in
his
budget
to
get
to
that
point,
where
we
have
a
balanced
budget
and
are
adding
investments
so
I'll
point
our
direction
actually,
first
to
the
revenues
portion
of
this
slide,
this
shows
sort
of
a
high-level
grouping
of
all
the
revenues
that
we
see
in
the
general
fund.
The
first
is
looking
at
intergovernmental
revenues.
E
E
Our
general
fund
tax
alone,
our
general
fund
property
taxes
alone,
are
increasing
by
slightly
more
than
that
6.1
and
we'll
talk
about
how
the
general
fund
portion
of
the
levy
interacts
with
other
parts
of
the
levy.
A
little
later
on,
franchise
fees
are
are
virtually
unchanged.
We're
holding
those
relatively
flat
in
2022
transfers.
Our
transfers
out
of
or
into
the
general
fund,
are
lower
than
normal.
We
are
because
of
the
slow
recovery
of
sales
tax
revenue.
E
We
are
holding
the
transferred
amount
from
the
sales
tax
or
from
the
downtown
assets
fund
into
the
general
fund,
flat
with
what
it
was
in
the
2021
budget.
So,
instead
of
the
30,
some
million
that
it
has
been
in
recent
years,
we're
holding
it
at
about
11
million
into
2022
to
make
sure
that
that
fund
is
recovering
and
that
there
are
enough
resources
to
pay
for
the
payments
that
need
to
be
made
out
of
the
downtown
assets
fund.
E
We're
proposing
or
the
mayor's
budget
is
proposing,
17
million
dollars
in
use
of
fund
balance,
and
that
is
a
little
bit
higher
than
you
see
in
typical
budgets.
Typically,
we've
been
between
five
and
11
million.
This
higher
amount
of
one-time
spending
matches
the
higher
amount
of
one-time
or
higher
amount
of
one-time
revenues,
rather
matches
the
higher
amount
of
one-time
spending
that
we
just
discussed
in
the
current
service
level
budget.
E
So
we'll
talk
a
little
bit
more
about
use
of
cash
later
as
well.
The
the
second
to
last
line
there
is
the
american
rescue
plan
act
funds
revenue
replacement.
So
this
budget
is
relying
on
about
47
million
dollars
of
our
total
arpa
allocation
to
replace
lost
revenue
in
the
general
fund,
so
that
sort
of
wraps
up
our
revenue
picture
in
the
general
fund
looping
back
up
to
the
top.
Our
current
service
level
budget
is
about
555
million
in
spending.
E
E
So
this
slide
shows
our
sort
of
five-year
outlook
in
the
general
fund.
When
the
city
of
minneapolis
received
our
american
rescue
plan
allocation
amount
of
271
million.
I
think
that
initially
kicked
off
a
conversation
about
how
do
we.
A
E
When
those
one-time
sources
go
away.
So
you'll
see
in
this
chart,
the
green
bars
represent
the
revenues
in
the
general
fund,
so
the
bottom
portion
that
dark
green
bar
shows
the
levy
the
top
portion.
The
light
green
bar
shows
all
of
our
other
revenues
in
the
general
fund,
and
this
shows
how
we
expect
each
to
increase
over
the
next
five
years.
E
E
E
E
So
the
the
small
amounts
above
the
green
bars
you'll
see
purple
showing
our
use
of
cash,
as
well
as
the
yellow
gold
color,
which
is
showing
use
of
american
rescue
plan
act
funds,
and
so
this
is
really
what
guided
the
use
of
those
funds
in
the
budget
and
the
projected
use
over
the
next
two
years.
So
that
again,
you
can
add
back
those
core
services
and
ftes
to
the
city's
expenditures
budget
in
a
way
that
won't
drive,
cuts
or
large
increases
to
the
property
tax
in
2025..
B
I
was
just
wondering
what
kind
of
assumptions
we're
building
in
the
current
service
level
about
salary
growth.
I
think
this
has
been
a
very,
very
tough
a
couple
of
years
for
our
employees.
I
think
it's
a
very
tough
time
for
us
to
be
going
to
the
table
with
an
austerity
mindset
as
we're
negotiating
with
our
collective
bargaining
units
and,
as
we
think
about
morale
and,
as
we
think
about
making
sure
we're
making
people
whole
for
the
incredible
work
that
they've
put
in
to
hold
us
together
during
the
pandemic.
B
I
I
want
to
make
sure
that
we're
not
making
overly
conservative
assumptions
or
or
austerity
based
assumptions
about
about
growth
for
our
current
service
level,.
E
Sure
thank
you,
chair
palmisano
and
council
member
fletcher.
In
our
current
service
level
budget.
We
project
yearly
increases
in
dental
and
medical
costs,
so
those
will
not
be
surprised.
Those
are
budgeted
for
we're,
projecting
step
increases,
we're
called
for
in
department
or
in
individual
contracts
and
we're
also,
including
across
the
board,
increases
in
our
projected
budgets.
E
They
are
using,
I
think,
a
10-year
average,
so
they
are
in
line
with
sort
of
what
we've
seen
over
the
long
term.
They're,
not
they're,
not
budgeting
for
large
one-time
increases,
but
they're
also
not
budgeting
for
flat
salaries
over
the
next
five
years,
we're
using
sort
of
the
standard
that
we've
used
in
our
current
service
level,
budgeting
for
for
the
recent
history.
So
we
are
including
some
of
those
increases
and
where
there
are
contracts
that
have
been
negotiated,
we're,
including
just
that
actual
amount.
E
E
So
the
general
fund
revenues,
a
4.5
levy
increase,
is
sort
of
the
large
lever
that
the
that
is
included
in
the
mayor's
budget,
we're
including
47.2
million
dollars
of
our
arpa
funds
as
revenue
replacement
and
then
17
million
in
use
of
fund
balance,
and
so
that
gets
us
to
revenues
that
match
the
expenditures.
E
I'll
take
a
minute
to
just
talk
about
that
use
of
fund
balance.
So
we
have
a
financial
policy
that
states
we
have
an
unobligated
fund,
balance
of
17
of
expected
spending
in
the
following
year
and
so
working
with
our
partners
in
the
controllers
division.
We
estimate
that
at
the
end
of
this
year,
using
what
we
know
about
spending
and
revenue
so
far,
we
will
be
about
45
million
dollars
above
that
required
amount.
E
So
using
an
additional
17
million
in
cash
balance
will
still
put
us
well
within
our
financial
policies
at
the
city
and
again,
there
are
one-time
costs
in
the
current
service
level.
In
addition
to
some
one-time
change
items,
particularly
in
elections,
that
really
match
that
one-time
source
of
funds
with
a
one-time
use,
go
ahead
and
go
to
the
next
slide,
so
this
shows
the
three-year
plan
for
using
our
revenue.
E
You'll
see
that
top
line
shows
all
of
the
general
fund
revenues.
The
next
line
adds
in
the
arpa
revenue
replacement.
So
this
is
the
amount
of
money,
the
federal
legislation.
One
of
the
primary
objectives
is
to
fund
core
government
services
as
a
replacement
for
lost
revenue,
and
so
these
are
the
amounts
that
are
but
are
planned
for
in
the
mayor's
budget
over
the
next
three
years
to
ensure
that
our
budget
is
balanced
and
that
our
property
tax
levy
stays
within
a
reasonable
amount.
E
So
this
this
takes
a
little
bit
more
detail
into
revenue,
replacement,
sort
of
what
we
mean
when
we
say
that
and
the
total
all
distribution,
the
the
overall
distribution
of
our
revenue
or
arpa
allocations.
So
phase
one
on
july,
2nd,
the
council
passed
102
million
dollars
of
spending
using
arpa
funds
in
the
in
this
budget,
the
mayor's
recommended
budget.
We
are
using
63
million
over
those
three
years
to
replace
sales
tax
revenue.
E
As
I
mentioned
a
couple
slides
ago,
we
are
holding
flat
the
transfer
from
the
self
or
from
the
downtown
assets
fund
into
the
general
fund
to
manage
the
lower
sales
tax
receipts
that
we
expect
for
the
next
few
years,
and
so
we
are
replacing
that
lost
transfer
into
the
general
fund
with
arpa
dollars
and
over
three
years.
That
adds
up
to
about
63
million
dollars
in
the
general
fund,
where
we
also
are
seeing
slightly
depressed
business
license
revenue
as
well
as
construction
revenue.
E
We
are
using
about
56
million
dollars
to
cover
that
lost
revenue,
as
well
as
to
add
back
some
of
those
core
services
that
were
cut
in
2021
and
that
leaves
50
million
dollars.
Unallocated
of
our
total.
Our
allocation
to
be
decided
on
in
another
phase
of
decision
making
next
slide.
E
So
this
is
kind
of
a
busy
slide,
but
this
shows
you
all
of
the
components
of
the
minneapolis
levy.
So
you'll
see
the
top
part,
is
the
general
fund
levy
and
that's
what
we've
really
been
discussing
for
the
last
several
slides
that
is
growing
by
about
6.1
percent,
because
many
other
parts
of
this
of
the
levy
grow
slower.
G
Thank
you
good
afternoon,
chair
palmisano
and
council
members,
rebecca
malmquist,
the
city
assessor,
I'm
here
with
amelia,
to
provide
some
property
tax
information
or
property
value
and
tax
information.
A
portion
of
this
is
a
summary
of
what
we
presented
to
you
at
the
annual
assessment
report,
given
this
spring
so
next
slide,
please.
G
G
This
is
the
lowest
percent
change
or
increase.
Since
2013,
you
can
see
that
the
residential
and
apartment
values
increased
as
a
portion
of
the
total
value
and
the
commercial
industrial
decreased
as
the
percentage,
and
it
isn't
indicated
here.
However,
I
do
want
to
mention
that
there
was
more
than
1.2
billion
dollars
in
new
construction
added
in
2021,
which
does
make
up
the
majority
of
the
value
increase
in
the
city
if
it
wasn't
for
the
new
construction
and
850
million
of
that
was
an
apartment,
new
construction,
the
overall
market
value
would
have
been
close
to
flat.
G
So
the
decreases
in
the
commercial
values
almost
cancel
out
the
increase
in
values
in
the
other
markets
without
the
new
construction
next
slide,
please.
So
this
slide
further
illustrates
the
decreases
in
the
commercial
sectors.
This
is
a
historical
view
of
the
commercial
industrial
market
broken
down
into
the
different
uses.
It
is
the
first
time
there's
been
a
decrease
in
the
commercial
market
value
since
2011,
and
we
saw
single-digit
decreases
in
office,
medical
and
retail
and
the
hotel
market
decreased
by
nearly
30
percent.
G
G
So,
then,
when
we
look
at
the
estimated
tax
projections
again,
these
are
estimates
without
the
final
tax
capacity
figures,
without
fine
fiscal
disparity
contributions
or
distributions
the
tif
tax
capacity,
as
well
as
state
assessed
values,
the
city
tax
rate
was
applied
to
the
tax
capacity.
It
was
it's
a
very
rough
estimate.
We
need
to
tell
you
that,
and
we
can't
really
stress
that
enough
for
all
the
value
percentiles
that
were
selected,
you
will
see
that
the
projections
indicate
tax
increases
for
most
properties
that
were
used.
E
Thank
you
so
much
director
momquist
go
ahead
and
go
to
the
next
slide.
E
E
H
Hi,
thank
you,
chair
palmisano,
council
members.
As
as
emilia
mentioned,
there's
two
remaining
elements
of
the
you
know
the
overall
levy
that
are
going
to
be
seeing
some
changes.
I
can
start
to
talk
through
those
changes
on
the
next
slide.
Please,
okay,
so
the
first.
The
first
piece
here
is
the
bond
redemption
levy.
H
Of
course,
this
is
the
levy
that
is
used
to
repay
the
the
money
that
we
borrow
to
complete
projects
like
street
improvements,
bridges,
improvements
to
various
city
hall
facilities
for
police
precincts
and
for
fire
stations
for
park
projects.
H
H
This
is,
of
course,
timed
with
the
10.3
million
dollar
decrease
in
the
in
the
library
levy,
so
this
results
in
a
net
neutral
impact
to
the
bond
redemption
levy.
The
other
piece
of
this
is
going
to
be
a
270
000
increase
in
the
bond
redemption
levy
associated
with
parks,
capital
projects.
H
As
you
may
know,
the
2020
parks
and
streets
ordinance
calls
for
timely
increases
to
parks,
funding,
to
account
for
inflationary,
increasing
easter
increases
in
construction
costs,
and
so
these
these
costs
are
being
built
into
the
bond
redemption
levy.
The
city
and
the
park
board
are
going
to
be
bringing
forward
amendments
to
codify
this
change
in
the
ordinance.
H
This
slide
covers
the
portion
of
the
levy
increase
associated
with
the
municipal
building.
Commission.
You
know
we're
seeing
another
substantial
change
from
2021
to
2022.,
in
effect
we're
seeing
a
return
to
more
typical
levy
levels
for
the
municipal
building
commission
in
2022
in
2021.
H
So
with
that,
these
were
the
two
remaining
increases
at
this
point
I'll
turn
the
presentation
back
over
to
director
kruger.
H
Yes,
our
our
obligation,
as
I
understand
it,
at
least
with
respect
to
the
levy,
is
that
we
no
longer
need
to
dedicate
the
levy
to
repaying
those
bonds
associated
with
the
you
know,
the
the
previous
uses
associated
with
the
library
and
at
that
point
those
amounts
fall
away
and
the
levy
can
be
repurposed,
as
was
planned
in
order
to
cover
associated
costs
of
you
know,
various
city
hall,
right
city
facility
improvements,
primarily
the
new
public
service
building
project
and
certain
elements
of
the
city
hall,
restack
project.
H
Yeah
and
this
year
we're
consolidating
those
amounts
and
we're
showing
everything
rolled
up
into
the
bond
redemption
levy
for
clarity.
In
previous
years,
we
we
kind
of
had
to
show
the
library
levy-
slash,
I
believe,
was
new
public
service
building
levy
to
to
qualify
where
those
resources
were
going
to
be
going
so
we're
seeing
as
we
kind
of
collapse,
everything
into
one
line.
We're
trying
to,
I
think,
add
a
little
bit
of
clarity
as
to
where,
where
these
resources
are
going
to
be
going
going
forward,.
D
And
how
long
will
they
need
to
be
dedicated
to
the
pay
off
the
public
service
building
debt.
H
Council
member
gordon
chair
palmisano,
thank
you
for
that
question.
I'm
not
sure
what
the
length
of
the
repayment
term
for
those
bonds
are,
but
I'm
certainly
we
can.
We
can
inquire
and
find
that
out
for
you.
D
Okay
and
I'm
it'll
be
interesting
to
see
that
I
just
think
sometimes
when
we,
I
know
that
when
we
were
being
sold
the
idea
of
this,
giving
the
libraries
to
the
county
or
telling
them
to
take
it.
D
We
were
thinking
we'd
end
up
and
we
are
essentially
but
we're
just
moving
the
10
million,
so
the
benefit
isn't
being
transferred
to
the
taxpayer,
necessarily
because
now
we're
just
keeping
the
the
levy
for
the
libraries
longer,
so
we
can
pay
for
another
building
and
pay
for
other
things,
which
makes
sense,
but
it's
interesting
from
kind
of
a
bigger
macro
perspective
about
how
we
do
that
and
how
we
can
do
that
and
tend
to
do
that.
Thank
you.
E
Very
good
I'll
just
move
us
along
to
the
next
slide.
Thank
you
so
much
robert.
E
So
so
that
really
wraps
up
our
discussion
of
the
our
presentation
on
the
mayor's
proposed
budget.
I
wanted
to
end
by
just
briefly
talking
about,
and
I
think
that
chair
palmisano
will
also
be
discussing
this.
The
next
months
are
going
to
look
like
deep
dives
from
each
of
the
departments
talking
about
their
programs,
their
goals,
their
their
activities
and
service
of
those
goals,
as
well
as
any
increases
or
changes
proposed
in
the
mayor's
budget.
E
They'll
also
include
a
review
of
any
previously
made
arpa
appropriations
to
those
departments
and,
like
I
said,
we'll
begin
starting
september
23rd
so
go
ahead.
Go
to
the
next
slide.
F
Thanks,
madam
chair,
it's
a
scheduled
question.
I
know
finance
just
helped
get
a
survey
out
for
folks
about
the
remaining
50
million
for
arpa
dollars.
Is
there
an
updated
timeline
about
when
we
might
expect
a
proposal
for
the
our
bus
spending.
F
I
realize
that
comes
from
the
mayor,
so
you
know
I'm
I'm
asking
you
as
staff,
if
what
you
might
be
able
to
share
about
the
mayor's
timeline
for
proposing
the
remainder
of
the
arpa
funding.
Yes,
indeed,.
E
No
problem,
and
unfortunately
I
don't
have
any
updates
to
you
about
the
specific
timeline.
I
think
that
there,
like
you,
said
the
survey
is
out
into
the
world
into
the
neighborhood
groups
and
to
other
community
groups,
and
I
don't
have
a
timeline
at
this
moment
but
hope
to
have
one
for
you
soon.
C
All
right
director
crewford
does
that
complete
your
all
of
your
business
great?
Do
you
want
to
share
a
little
bit
about
this
link
that
is
on
the
screens
for
everybody,
because
I
have
found
some
of
the
ways
that
our
budget
has
evolved
to
actually
be
a
great
way
to
try
and
answer
my
own
questions
about
the
budget?
It's
pretty
user
friendly.
So
would
you
want
to
just
share
a
little
bit
about
some
of
these
improvements.
E
Yes,
absolutely
thank
you
so
much
chair
palmisano,
so
our
budget
book
looks
a
little
bit
different
this
year
we
are
using
a
different
sort
of
publishing
software,
where
we
can
use
our
financial
transparency
platform
to
work
together
with
our
budget
book
in
a
more
hopefully
more
seamless
way.
So
we
are
presenting
all
the
same
information
that
we
typically
present,
but
the
information
in
in
the
book
is
much
more
flexible.
E
So
we
also
have
this
data
up
in
our
financial
transparency
website
and
if
you're
familiar
with
those
interactive
graphs,
you
will
recognize
that
you
can
zoom
in
and
you
can
filter
for
department
or
fund
or
the
kind
of
expense
that
you're
interested
in
looking
at
and
you're
you're
just
able
to
explore
the
data
a
little
bit
more.
That's
the
hope.
That's
the
intention,
and
so
this
is
our
first
year
producing
a
budget
like
this.
We
also
have
links
that
hyperlinks
that
can
hopefully
help
you
navigate
it
rather
than
scrolling
through
500
pages
of
stuff.
E
So
if
you
are
reading
this,
if
any
council
members
are
having
a
hard
time
navigating
the
new,
the
new
format,
please
reach
out
to
me
or
my
staff.
In
addition,
we
know
that
we
need
a
static
budget
document
for
the
legislative
process,
so
we
are
also
putting
together
a
pdf
of
these
things
that
could
be
used
to
to
print
off
if
you're
having
problems
or
if
you
would
like
to
hold
some
paper
in
your
hand
and
take
notes,
we're
working
to
meet
that
as
well.
E
But
I
hope
that
this
sort
of
greater
transparency
and
really
leveraging
our
transparency
website
connecting
that
with
our
budget
book
will
hopefully
help
folks
answer
questions,
look
at
trends
and
see
things
in
a
little
bit
more
of
a
detailed
way.
E
C
You
seeing
no
further
discussion
at
this
point
I'll
direct
the
clerk
to
receive
and
file
the
mayor's
2022
recommended
budget,
as
well
as
the
overview
provided
by
staff.
Thank
you,
director,
kruver
and
director
malmquist,
mr
harrison
before
we
adjourn
today.
Just
to
reiterate
briefly
what
director
kruver
said.
You
know
for
the
public
and
my
colleagues
the
anticipated
timeline
for
the
city's
2022
budget.
C
Our
next
step
will
be
receiving
presentations,
as
you
saw
a
few
slides
ago
that
will
drill
down
into
the
details
of
each
department's
proposed
budget.
We
will
begin
those
presentations
at
our
very
next
meeting,
scheduled
for
september
23rd
at
1
30
and
continue
through
the
month
of
october
council
members
you
have
received,
invites
for
all
of
these
meetings
and
they've
been
noticed
for
the
public
on
the
city's
limbs
legislative
information
management
system.