Budget Committee October 24, 2023   10/24/2023

Discussion

• • Emily Koski
  • 00:00:00
    budget, I and I invite Adam Blum to kick off that presentation.
  • 00:00:03
    Welcome.
• • SPEAKER_18
  • 00:00:10
    Thank you, Chair Koski and Council members.
  • 00:00:11
    My name is Adam Blum and I'm the capital budget analyst for the budget division.
  • 00:00:15
    I'll be giving a brief overview of the capital improvement plan and then around Robin of Department and agency staff will come up to talk about their specific projects and programs and we can take any questions at the end of each section.
  • 00:00:27
    If that works for you.
  • 00:00:29
    Before I begin, I'd like to say thank you to city departments and partner agencies for all the work they put into capital planning.
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    I'd also like to thank the members of the Capital Long Range Improvement Committee, also known as CLIC, for the capital budgeting process.
  • 00:00:47
    For those who may not be aware, CLIC is a committee made up of community members appointed by the mayor and council who review project requests and develop a recommended capital improvement plan.
  • 00:00:56
    And it just so happens that there's a few openings on CLIC, so anyone interested can go to the city clerk's current openings website to learn more and apply.
  • 00:01:07
    and the capital improvement program, or CIP, budgeting process is really a continuous cycle.
  • 00:01:14
    The steps are outlined on this diagram.
  • 00:01:16
    Annually, beginning in January through March, departments and partner agencies work on capital budget requests for the six-year CIP.
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    At the beginning of April, these requests are made available to click, review the requests, hear department presentations, rate projects, and make CIP recommendations in late June, early July.
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    These recommendations are used as a starting place for the mayor's recommendation, which is submitted in August.
  • 00:01:42
    The Council, of course, reviews, amends, and adopts the CIP by December.
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    The first year of the CIP is appropriated and projects begin in years two through six of the CIP serve as the basis for the capital budget request the following year.
  • 00:01:55
    And I'd like to note that while I've listed sort of the most common months on the diagram for demonstration purposes, projects move between the various steps as needed throughout the year.
  • 00:02:07
    The 2024-2029 Capital Improvement Program totals just under $1.4 billion over the course of the six-year plan, with $271 million planned for 2024.
  • 00:02:20
    It consists of projects ranging from public art, city hall and other city facilities, roads, streets, bridges, water services, etc.
• • SPEAKER_14
  • 00:02:32
    And so now I will turn things over to my colleagues in Arts and Cultural Affairs Department to discuss their projects Welcome good morning madam chair council members I'm Mary Altman and I have the privilege of overseeing public art programming for the city of Minneapolis and
  • 00:02:51
    With me today is Ben Johnson, the Director of Arts and Cultural Affairs.
  • 00:02:56
    Art in Public Places is the name of the program that is funded through the city's capital improvement program.
  • 00:03:02
    It's been funded through the city's capital improvement program since the
  • 00:03:07
    late 1980s.
  • 00:03:10
    There are three areas of values and goals that were adopted by the Minneapolis City Council for public art programs.
  • 00:03:18
    There are artistic goals, there are community-based goals, and there are resource goals.
  • 00:03:24
    And when those goals were adopted, it was determined that they were all equally important.
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    So the artistic goals are not more important than the community-based goals,
  • 00:03:33
    and the goal of, for example, making artworks in the collection durable and easy to maintain is not less important than the community-based goals.
  • 00:03:44
    We have twelve commissions underway and I'll talk about those in a second with a total of twenty five artists under contract and ninety two percent of the artists are BIPOC.
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    Also on the right is a map of all of the existing artworks developed through the Art in Public Places program
  • 00:04:00
    in gray as well as in blue are the projects underway.
  • 00:04:06
    So we have two projects in the capital improvement program.
  • 00:04:11
    The first one is always in the capital improvement program due to ordinance and that is Art 01 and that is funded through 1.5% of the net debt bond by ordinance.
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    And so you can see the estimated budget for that program for 2024 through 2029.
  • 00:04:32
    and then the second one we have is a unique project.
  • 00:04:35
    We've actually never had two projects in the Capital Improvement Program before and that's for the Upper Harbor.
  • 00:04:42
    The image is of an artwork that was just completed on the green crescent by Javier and Tina Tavera called Strength and Unity.
  • 00:04:50
    That was part of the I-35W Lake project and you can see a picture of the charost who were at the dedication a couple of weeks ago on the right.
  • 00:05:02
    So, Art in Public Places, or ART01, has a budget of $1.25 million in 2024 as per ordinance.
  • 00:05:10
    The goal is to integrate art into where we're doing building.
  • 00:05:14
    Art in Public Places works where the city works.
  • 00:05:16
    And so, actually all the people you'll hear from this morning are our collaborators.
  • 00:05:20
    We work on public works projects, park projects, property services projects.
  • 00:05:25
    and we hope to be collaborating with the MBC.
  • 00:05:29
    And as I said, the goal, so the current projects, for example, I'll just talk about a couple, again, are where the city is doing important work on Lake Street, we have two projects, we have New Nicollet and
  • 00:05:41
    We just closed the call for artists last week for that project.
  • 00:05:45
    We're really excited to have artists working on that really important project as well as the under bridge environment at Hiawatha and Lake.
  • 00:05:52
    As you know, both of those areas on Lake Street were severely impacted by the uprisings after George Floyd's murder.
  • 00:05:58
    We're also working on an important bike-pedestrian pathway, the Northside Greenway.
  • 00:06:05
    And we're working on Samatar Crossing and hope to dedicate an artwork there.
  • 00:06:09
    Next spring, named after Hussein Samatar, who is one of the first important Somali leaders in our city.
  • 00:06:16
    And we're working at the Central Riverfront in downtown at Oamney Yamney, which is a site that, as you know, is sacred to the Dakota people.
  • 00:06:27
    Also, the image here is of a project that just went in in September that we've been working on for two decades, the John Bigger Seed Project, which was installed on the Olson Bridge over 94, a long collaboration we've been doing with the Department of Public Works.
  • 00:06:45
    The second proposal is for public art for Upper Harbor.
  • 00:06:49
    Never done a proposal for a specific project for public art.
  • 00:06:54
    and the Capital Improvement Program before, but we felt that this was such an important project to the city.
  • 00:06:59
    It's a lot of acreage.
  • 00:07:01
    We're really building a new community there.
  • 00:07:03
    And on occasion, the city does invest additional funds in public art outside of the ordinance.
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    For example, for the new public service building, it had its own public art abroad.
  • 00:07:14
    budget of $2 million.
  • 00:07:17
    Prior to that, Nicollet Mall had its own public art budget of $2 million.
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    And so we wanted kind of a comparable amount of money to go into the Upper Harbor project.
  • 00:07:27
    And so we're requesting over three years $1.55 million beginning in 2025.
  • 00:07:34
    and the goal of this project is to integrate or to create an identity, help build the community identity of Upper Harbor.
  • 00:07:43
    An example of time we did this, which is actually almost 20 years ago, is Seitu Jones created nine different artworks as part of the development of Heritage Park, which is also a new community that the city was building and the goal of that was to really create the identity of that place.
  • 00:07:59
    and I think Seitu did really successfully and so that's really a precedent for us.
  • 00:08:03
    Juxtaposition of arts was hired by both the city and the park board to do some initial planning around this and they identified some really powerful themes including themes of ecological harm, environmental justice and the settlement history of the north side and so that will be the basis for the artists coming into this work.
  • 00:08:25
    So that concludes my presentation.
  • 00:08:27
    I just want to point out, if you don't know, we have eight interactive public art maps online of public art owned by both the city and the park board.
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    The image on the right is an image of lawn signs that we've distributed with the park board in the city owned areas and parks across the city advertising these maps.
  • 00:08:48
    And if you click on the QR code, it'll take you to the map site.
  • 00:08:53
    Thank you, Ms. Altman.
• • Emily Koski
  • 00:08:54
    I will see if any colleagues want to ask questions just so that it's easier for you guys as you go through this.
  • 00:09:01
    I see Councilmember Payne.
• • Elliott Payne
  • 00:09:03
    Thank you, Madam Chair.
  • 00:09:06
    Obviously, this is part of our capital plan, and so we're really talking about art kind of from an infrastructure perspective, but we also know that art
  • 00:09:14
    builds communities, reflects expression of emotions.
  • 00:09:19
    It's kind of a more profound thing than just infrastructure, not to say it's just infrastructure, but I'm just curious about how we think about our allocation of arts funding between this idea of public art
  • 00:09:34
    which I know is what you're here to speak on, but maybe you could just enlighten me in terms of how we're thinking about it as like the art ecosystem and how the kind of institutional funding intersects with that idea.
• • SPEAKER_14
  • 00:09:47
    That was Madam Chair, Council Member Payne.
  • 00:09:53
    That's maybe something that Ben could speak to and should have a broader vision for than I do.
  • 00:09:58
    But you know, the city has had a tradition of supporting public artists and
  • 00:10:03
    Building the careers of public artists and emerging public artists for decades.
  • 00:10:11
    That's an important part of the art ecosystem and an important way that visual artists build careers in the city.
• • Elliott Payne
  • 00:10:20
    Absolutely, yeah.
  • 00:10:22
    So is that kind of how you think about it is just this maybe tentpole might be a little overstatement but like this is that really tangible way of supporting artists through this work but also helps build the ecosystem of the arts community through these larger commissions.
• • SPEAKER_14
  • 00:10:37
    Exactly.
  • 00:10:38
    I mean I think of an artist named Christopher Harrison who you might know.
  • 00:10:42
    You know he started out primarily as a muralist and then he worked on the seed project and started working on a more permanent artwork by doing enamel panels, still two-dimensional.
  • 00:10:56
    And then he became part of a public art project that focused on the development of
  • 00:11:02
    The Seed Project was a $5,000 commission.
  • 00:11:13
    That project was a $25,000 commission.
  • 00:11:15
    Most recently, he created a ceiling for the city office building.
  • 00:11:20
    which was an $82,000 commission and now he's one of the most competitive public artists in town.
  • 00:11:25
    And so that I know we really work hard to build the careers of public artists, primarily visual artists, but we're part of that ecosystem.
• • Emily Koski
  • 00:11:38
    Thank you.
  • 00:11:38
    I'm not seeing any further questions.
  • 00:11:41
    Thank you so much for this presentation.
  • 00:11:43
    Appreciate it.
  • 00:11:43
    Thank you Madam Chair.
  • 00:11:44
    Thank you.
  • 00:11:45
    I next we have the Municipal Building Commission welcome.
• • SPEAKER_15
  • 00:11:52
    Good morning.
  • 00:11:53
    Good morning council members.
  • 00:11:54
    My name is Erin Delaney, and I'm the director of the Municipal Building Commission Thank you for your time this morning The MBC is requesting city funding for three capital projects These three are included in the mayor's recommended budget the total request for these three projects is just over 16 million dollars However, you'll remember that any joint MBC project is funded 50-50 with Hennepin County
  • 00:12:23
    which the result is a city request of just over $8 million.
  • 00:12:29
    Before we talk about the projects, I just wanna briefly talk about the MBC staff and I wanna remind everyone that the entire department of about 48 employees is closely involved.
  • 00:12:40
    All departments, all staff are involved with all of the capital projects.
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    Whether it's starting with the procurement process or keeping the building secure
  • 00:12:50
    or clean during capital projects.
  • 00:12:52
    That's an NBC staff person.
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    In addition, our utility and building trades employees work very closely with all contractors to assist them in working in an older and very unique building.
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    So the NBC staff is intricately involved with all of those projects.
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    The next slide is the funding request.
  • 00:13:16
    Again, MBC-10 exterior improvements, MBC-01 life safety, MBC-02 is mechanical.
  • 00:13:24
    Again, the city request is just over $8 million.
  • 00:13:30
    I'll start with MBC-01 and MBC-02.
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    I know you've heard about these projects for 25 years.
  • 00:13:36
    That's an ongoing comprehensive project that the MBC has been working on.
  • 00:13:41
    I'm very pleased to update the council that we are now working on the final two stages of this comprehensive project.
  • 00:13:51
    This is the work that the MBC will be doing at the same time that the city is working on the restack project.
  • 00:13:59
    which is very exciting and I know you'll be hearing a lot more about shortly.
  • 00:14:04
    As the city is working on the restacking, the MBC is involved in the mechanical and the life safety upgrades for these two areas.
  • 00:14:13
    Selection process is ongoing and is very exciting.
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    We hope to have work started in late December of this year.
  • 00:14:21
    Reminder what that work includes for the MBC under life safety as sprinklers, fire alarms, smoke barriers, abatement of all hazardous materials in the building.
  • 00:14:33
    The mechanical upgrades include, you know, just like it says it's far more complicated than one sentence, but renovation and electrical upgrades to the heating and cooling systems in the building.
  • 00:14:45
    The third project
  • 00:14:47
    is exterior improvements.
  • 00:14:49
    This work includes masonry repairs, waterproofing, tucked pointing, window repairs.
  • 00:14:57
    We have a extensive air infiltration challenge with a lot of our windows in City Hall.
  • 00:15:04
    We've also got gate replacement that's ongoing right now as well under this exterior improvements project.
  • 00:15:11
    Again, another large scale project
  • 00:15:14
    The MBC has funding requested through 2026.
  • 00:15:18
    The funding request before you now is for Phase 3, which is to replace and waterproof the 13th floor of the 4th Street Tower, repair to the 12th floor ceiling, and replacement of our flagpole system, which is woefully outdated.
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    I've also included future phases 4 and 5 for your information.
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    In addition to those projects, I think it's important to remind the council that the MBC is also involved in other capital projects that we're not currently making funding requests for.
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    The facility safety improvements, undoubtedly you've seen the scaffolding located at the Fifth Street entrance of the building.
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    That's an MBC project.
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    We're finishing up the Fourth Street restoration project along Fourth Street.
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    In addition, we have some Hennepin County-only capital projects that the MBC is managing as well.
  • 00:16:18
    Again, just some additional information for the Council.
  • 00:16:23
    In closing, the MBC, we base our funding requests on our mission, and that is to provide a safe and effective operational workplace to preserve this historic landmark
  • 00:16:39
    and to make it a functional environment for employees and members of our community.
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    Also, I have included our websites too, so please check us out for tours, bell concerts, any other events.
  • 00:16:52
    There's additional information.
  • 00:16:55
    Thank you for your time and I'm available for any questions.
• • Emily Koski
  • 00:16:59
    Thank you, Ms. Delaney.
  • 00:17:00
    I will see if there's any questions from colleagues.
  • 00:17:05
    I am not seeing any.
  • 00:17:06
    So thank you so much.
  • 00:17:07
    Appreciate it.
  • 00:17:09
    And next we have Property Services Capital Budget Overview.
• • SPEAKER_14
  • 00:17:18
    Welcome.
• • SPEAKER_09
  • 00:17:26
    Good morning, Chair Koski, Council Members.
  • 00:17:29
    I'm Barbara O'Brien, Director of Property Services for the City of Minneapolis.
  • 00:17:34
    Property Services exists to provide a safe and equitable work environment for all city employees.
  • 00:17:43
    With that mission and in partnership with our various city departments, Property Services is bringing 13 projects forward in the 2024-2029 Capital Project Program.
  • 00:17:57
    These projects support the work of Public Safety, Public Works, Minneapolis Farmers Market, Animal Care and Control, and various office needs throughout the organization.
  • 00:18:12
    Beginning with the Minneapolis Fire Department, two capital projects are currently programmed.
  • 00:18:20
    FR-11 is the replacement of the existing fire station 11.
  • 00:18:26
    and FR-15, which is the replacement of the alerting system across the fire station portfolio, so 21 stations.
  • 00:18:36
    This project is currently in pre-design and we hope to have the alerting system executed in 2024.
  • 00:18:51
    The two Minneapolis Police Precincts that are identified in our capital program are MPD-04, which is the replacement and relocation of Police Precinct 1, or First Precinct.
  • 00:19:04
    This project is currently under construction and is anticipated to be delivered in the fall of 2024.
  • 00:19:13
    MPD 06 is the study for a permanent location for Precinct 3.
  • 00:19:19
    Property services is awaiting several steps to happen prior to acting on advancement of this project.
  • 00:19:28
    PSD 15 is the second phase of the traffic maintenance facility upgrades.
  • 00:19:37
    Phase 1 was completed in 2015
  • 00:19:41
    with a focus on interior spaces, while phase two will address the mechanical and electrical infrastructure of this facility.
  • 00:19:51
    PSD 16 addresses accessibility improvements, ADA compliance, restroom updates, and energy efficiency improvements at the farmer's market.
  • 00:20:09
    We will be researching options for partial enclosure of the market structure to elongate the market season at this site.
  • 00:20:21
    The City Hall Restack, which is PSD 20, is a joint project between the City of Minneapolis and the Municipal Building Commission.
  • 00:20:31
    Phases 1 and 2 are complete and Phase 3 is the remaining phase.
  • 00:20:37
    To date, planning is complete for Phase 3.
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    We have accepted construction proposals and are awaiting a construction contract.
  • 00:20:46
    We anticipate the final phase to be fully complete mid-2025.
  • 00:20:52
    This project will result in modern work environments for city employees and elected officials of our city.
  • 00:21:00
    We are very much looking forward to the transformation of City Hall.
  • 00:21:06
    PSD21 is the Public Works Training and Recruitment Center.
  • 00:21:11
    This facility includes classrooms, conference rooms, simulator rooms, shops for training for future city employees.
  • 00:21:23
    There would also be space that would partner with regional labor organizations as well as provide space for neighborhood use.
  • 00:21:36
    PSD-22 is Reg Services, Minneapolis Animal Care and Control.
  • 00:21:43
    Currently, it's being examined by the way of a planning effort to identify unmet needs at the current animal care facility.
  • 00:21:54
    Exploring options to reconfigure, expand, or potentially relocate
  • 00:22:01
    to meet the needs.
  • 00:22:03
    This building has outgrown its current size and there are some complexities with the adoption portion and the nuisance animals and it is very problematic for the city employees who work in this facility.
  • 00:22:28
    PSD26 is a security improvement project related to physical security equipment such as cameras, fencing, gates, and access control.
  • 00:22:39
    This project will support the modernization of existing aging equipment to meet increasing security needs across our built portfolio.
  • 00:22:52
    PSD-27 is the 3000 Minnehaha Phase 1 site cleanup.
  • 00:23:00
    Minimal restoration improvements to provide for a securable and weathertight facility.
  • 00:23:07
    We will be looking to replace doors and door frames, windows and window frames, the skylight,
  • 00:23:14
    restore operation to the elevator and electrical service that was damaged during the uprising.
  • 00:23:24
    Efforts will allow for the barriers and temporary fencing to be removed.
  • 00:23:31
    PSD 28 is the council chamber's security enhancements.
  • 00:23:37
    The Security Upgrade Project will increase safety and security by moving the dais forward, allowing for a greater distance behind where you're sitting for passing in the event of an emergency.
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    It will also construct a more restrictive barrier between the dais and the public.
  • 00:24:00
    This project is separate from the City Hall Restack Project,
  • 00:24:04
    but work will occur simultaneously in order to take advantage of the availability of this space while the larger project is underway.
  • 00:24:14
    And finally, PSD 29 is a community safety training facility designing construction of a new facility for police, fire, and first responder training and wellness that will meet current and future needs of the Minneapolis Community Safety Department
  • 00:24:34
    and others.
  • 00:24:36
    Thank you for your attention.
  • 00:24:37
    I'll be happy to address questions related to any of these 13 projects.
• • Emily Koski
  • 00:24:44
    Thank you, Ms. O'Brien.
  • 00:24:46
    I have Councilmember Wonsley.
• • Robin Wonsley
  • 00:24:48
    Thank you, Chair Koski.
  • 00:24:50
    Director O'Brien, I just had a question regarding slide 19 with the department funded projects.
  • 00:24:56
    I did take a look at both our capital budget decision summary as well as the 2024 through 2029 capital program descriptions and saw in the facility request that
  • 00:25:10
    In addition to the first precinct, the third precinct, there was also a department request for the fourth precinct to either start or basically construct a new precinct in that the department did make a request for $4 million for 2025.
  • 00:25:25
    So just wanted to know why that wasn't included here.
• • SPEAKER_09
  • 00:25:28
    So I am aware of that request, and it is
  • 00:25:35
    It is on the list, but these are the top 13 that were prioritized by the mayor's budget proposal.
  • 00:25:48
    So this is the list that we have approval to move forward with.
• • Robin Wonsley
  • 00:25:54
    Okay, so that could be approved or be included in the future mayor's budget, but basically between 2024 and 2029,
  • 00:26:03
    There's an expectation that we do move forward with allocations of some sorts with the fourth precinct.
• • Katie Cashman
  • 00:26:08
    That's right.
• • Robin Wonsley
  • 00:26:09
    Okay, that's good to know.
  • 00:26:10
    So, you know, we're looking at the next five years making investments in basically having three new police precincts.
  • 00:26:18
    So that's really good context to have, especially financially.
  • 00:26:21
    So thank you for providing that clarification.
• • Emily Koski
  • 00:26:27
    All right.
  • 00:26:27
    I have not seen any further questions or comments.
  • 00:26:32
    Thank you so much for the presentation.
  • 00:26:34
    And next, we have the Park and Recreation Board capital budget.
  • 00:26:43
    Welcome.
• • SPEAKER_13
  • 00:26:48
    Thank you Chair Koski and Council Members.
  • 00:26:50
    My name is Adam Arvidson and I'm the Director of Strategic Planning for the Minneapolis Park and Recreation Board.
  • 00:26:55
    So I'm going to take you through the Park Board's capital requests and then I think you're going to hear more about the Park Board overall budget later.
  • 00:27:03
    The place that I want to start is to note that the foundation of the Park Board's CIP is equity.
  • 00:27:09
    We have an ordinance that sets forth an empirical set of metrics by which we rank parks and then bring them into the CIP when their rankings appear next on the list.
  • 00:27:21
    The projects are selected based on community characteristics and also on park characteristics.
  • 00:27:27
    This was the first CIP in the nation that used community characteristics as a determining factor for prioritizing projects in an empirical way.
  • 00:27:37
    So we look not just at the quality of the assets in the park but we look at the relative need in the community around the park.
  • 00:27:44
    What's important to note this year is that in 2023, the Park Board made the first significant update to those metrics since they were passed in 2016.
  • 00:27:54
    We did modify the density metric because it was a static metric that needed to be able to evolve with the times.
  • 00:27:59
    There were a few housekeeping items also, but the most important thing was
  • 00:28:03
    that an unintended consequence of the metrics was that we have a bunch of undeveloped parks in our system that cannot be fully scored, so they cluster down at the bottom of the rankings.
  • 00:28:13
    The danger would be that in the future we'd spend years and years and years doing nothing but improving undeveloped parks in a fairly non-strategic way.
  • 00:28:22
    So what we've done is we've taken apart the undeveloped parks from the developed and made two lists so that we can invest strategically in them side-by-side over time.
  • 00:28:31
    It also allows us to prioritize those undeveloped parks that are actually going to have recreational benefit, particularly in areas that don't have a lot of park access right now, like for instance in the North Loop or the far north side up at Ryan Lake.
  • 00:28:47
    So we're implementing the NPP 20 ordinance through our capital projects.
  • 00:28:53
    These two maps show you generally where the set of CIP projects exist across the city.
  • 00:28:58
    You'll see that there's still a little bit of clustering kind of in the near north side and the upper south, but the stars are starting to move out across the city quite a bit.
  • 00:29:08
    This is what I say what I call that we're entering NPP 20 phase two.
  • 00:29:13
    So phase one was really those parks in the areas of greatest needs in our city where there had been less investment and there was significant community challenges.
  • 00:29:22
    So those were ranked you know one through 35 or so and they did focus on the north side and the upper south part of Minneapolis.
  • 00:29:29
    We're actually starting to move into a set of parks that are what you might describe as tired or declining, and those parks can be scattered throughout the city.
  • 00:29:38
    So you'll note, you know, Audubon Park in Northeast is here, Pershing and Linhurst in Southwest.
  • 00:29:46
    These are not areas that score high on our community metrics.
  • 00:29:49
    but the park assets themselves are in very poor condition and investment has not taken place for a very long time.
  • 00:29:55
    So that's that middle tier of parks.
  • 00:29:57
    And then phase three are those parks that are in really good shape.
  • 00:30:01
    They're in parts of town that don't score high on community metrics, but by the time we get to them in eight to 10 years, they are going to need those improvements.
  • 00:30:08
    So we're sort of right in the heart of that phase two, which are the parks kind of ranked between 30 and 80 out of about 150 parks.
  • 00:30:17
    So we have many department funded projects.
  • 00:30:20
    I'm not going to go through all of them right now, but you can see that they are scattered throughout the next six years of the CIP.
  • 00:30:28
    We have projects that are ongoing programs such as the play areas or even on that top line, the athletic fields program.
  • 00:30:38
    And then you'll see also some single park projects kind of popping into the mix there.
  • 00:30:43
    For instance, on the second line, Audubon Park with funding requested in 24 and 25.
  • 00:30:49
    So again, I'll just scroll through this quickly.
  • 00:30:51
    I want to highlight the Neighborhood Parks Rehabilitation Program, which is the money that we use to do general upgrades throughout our park system, replacement of benches, drinking fountains, pathways, courts, lighting, HVAC systems in our recreation centers.
  • 00:31:07
    So that's a pretty big dollar amount, and it's in a set of 10 rehabilitation funds that we use throughout the system, not to build brand new things, but to make sure that we're keeping up
  • 00:31:17
    the infrastructure that we have already today.
  • 00:31:22
    So I noted that we have two different categories of projects roughly speaking.
  • 00:31:27
    We have our large and ongoing projects and these are taking place in 46 plus parks and I say plus because that neighborhood capital rehabilitation program I just mentioned we don't always know exactly how many parks we're going to touch in a given year because we go where the asset need is.
  • 00:31:44
    but the park CP project or capital infrastructure the goal here is to enhance recreational infrastructure while also transforming recreation for present-day users so these are the projects that go into a park and remake it whether that's replacing a playground
  • 00:32:01
    whether it's turning a tennis court into a basketball court or whether it's bringing something brand new into our system like a pump track at Perkins Hill Park or a climbing wall at Kewaden.
  • 00:32:12
    So those are parks that are happening, projects that are happening in a single park where there's an investment of a million dollars or less.
  • 00:32:20
    I mentioned the rehabilitation program.
  • 00:32:23
    It's a total investment of $26.6 million across six years at multiple parks.
  • 00:32:28
    The playground and site improvements program, we do about three or four playgrounds a year in parks regardless of the equity metric.
  • 00:32:36
    We're really looking at those poorest condition playgrounds.
  • 00:32:40
    Those are some of our most used facilities and have the most risk to the public, so we need to make sure that we're keeping on top of those.
  • 00:32:46
    We're proposing $9.5 million in 22 parks.
  • 00:32:50
    The shelter pool site improvements and the athletic fields site improvements programs are really beginning to phase out under the new NPP 20.
  • 00:32:59
    But we do have one project in each of those sites, a pool at Fuller Park, which has been in the CIP for a very long time, and an athletic field at the Lake Nicomis athletic fields.
  • 00:33:11
    and I note in the upper right corner of this slide that the six-year CIP will make improvements in more than 66 parks out of 153 that we rank in our system.
  • 00:33:22
    We also have single park projects.
  • 00:33:24
    These are the example like Autobahn that I mentioned before.
  • 00:33:27
    These are projects that are happening in a park where the budget is greater than a million dollars.
  • 00:33:33
    And we determine the investment in a park partly by its size, the number of assets that it has, or how much change was requested by the community during a years-long master planning process for each park.
  • 00:33:48
    The goal here again is to enhance that recreational infrastructure while at the same time transforming that system for present-day users.
  • 00:33:56
    I think it's important to recognize as we spend this money that a lot of the park infrastructure was conceived and envisioned in the 1960s and 70s and that we're a very different system today, a different city with different recreational desires and so as we make this investment
  • 00:34:10
    It's important where appropriate and where the community has asked for it through master planning that we sometimes transition facilities to something else.
  • 00:34:19
    For instance, as I mentioned, the pump track and the bouldering walls.
  • 00:34:23
    These are new activities that could not have ever been envisioned in the 1960s and 70s.
  • 00:34:28
    What's interesting about these projects also is that they use what we call participatory project scoping.
  • 00:34:34
    So there's a budget amount and we have a master plan and the budget cannot implement the entire master plan at once.
  • 00:34:40
    So our project managers go to the community and first ask a prioritization question.
  • 00:34:46
    We look at working with the community and with park board staff and sometimes city staff about what things we ought to implement in this phase of that work.
  • 00:34:54
    and then that work continues.
  • 00:34:56
    So the community does have a say in what pieces of that master plan get built first.
  • 00:35:01
    What are the priorities?
  • 00:35:03
    You notice there are 20 parks that fall into this category ranging all across our system as again in that phase two you see them kind of showing up everywhere in almost every district in the city.
  • 00:35:17
    That's the end of the capital presentation for the park board.
  • 00:35:20
    Again, my name is Adam Arvidsson and I'm happy to stand for questions.
  • 00:35:23
    Chair Koski.
• • Emily Koski
  • 00:35:24
    Thank you, Mr. Harvardson.
  • 00:35:26
    I am not seeing any questions or comments from colleagues, except I see Councilmember Rainville.
• • SPEAKER_11
  • 00:35:36
    Thank you, Madam Chair.
  • 00:35:37
    My question isn't so much for you, Adam, as I see your manager here.
  • 00:35:44
    When can we talk about the security issues along the riverfront in a meaningful fashion?
• • SPEAKER_12
  • 00:35:59
    You're welcome to come up and answer.
  • 00:36:10
    That is a question that we are always in the park system, always concerned about safety within our parks.
  • 00:36:16
    I believe we've been incredibly responsive to the concerns of residents and our park system.
  • 00:36:22
    I think that I am always available.
  • 00:36:25
    I know we've had conversations multiple times on concerns around some of our parks and access to our parks.
  • 00:36:31
    And so we are always available and would be more than happy to have
  • 00:36:37
    and the City Council.
  • 00:36:53
    ways that we start to kind of create spaces that are safe and looking at innovative ways that we can create buffer areas, whether it's landscaping, whether it's fencing, and also involving more of our Community Connections team and Violence Prevention team that's out there in our parks every day, working with our community.
  • 00:37:13
    We have multiple examples of, for example, Loring Park, which was ranked
  • 00:37:18
    the highest in crime for a major part of and in the early 2020s, 21, 22.
  • 00:37:26
    The amazing part about that was that with work with the community, working with our community connections team, working with our police, working with walkers, Loring Park went for the number one most challenging park as far as crime
  • 00:37:38
    down to like they had zero reports of crime because of the efforts that we did working with community.
  • 00:37:44
    Stevens Square is another really wonderful example working with Commissioner Schaffer and working with community there, working with the businesses.
  • 00:37:51
    So we have invested, we are working, we are connecting with community to make sure that we address a lot of the issues and concerns and particularly in our parks.
  • 00:38:00
    But we have a lot of examples but I would say a long answer.
  • 00:38:04
    I am always available in the park
  • 00:38:06
    staff are always available to work through any concerns that the community has in particular customer rainbow things and concerns that you have in particular on the downtown area.
• • SPEAKER_11
  • 00:38:14
    Thank you and you have been accessible and I appreciate that.
  • 00:38:17
    It's just so difficult to get some time with you and I don't mean to put you on the spot here today but since you're here and I see you I want to get that commitment and I think you have a very very good idea to include Chief Ojado in it because we all have to work in lockstep together and as you know the the world's record for shots fired in a park is held at Boom Island
  • 00:38:40
    with over 100 shots fired and we have to stop that type of activity.
  • 00:38:46
    Thank you.
• • Emily Koski
  • 00:38:47
    Thank you, Superintendent.
  • 00:38:49
    And let me just double check here.
  • 00:38:52
    I'm not seeing any further questions or comments.
  • 00:38:54
    I would just comment, it's exciting to see all of the projects.
  • 00:39:01
    Perhaps it's going to be in the details, but as you know, I am an avid pickleball player and would hope that as we're doing some of these improvements, we are thinking about the future of that impressive game.
  • 00:39:15
    Thank you so much.
  • 00:39:16
    I appreciate your presentation.
  • 00:39:19
    Next, Public Works.
• • Margaret Anderson KelliherDirector of Public Works
  • 00:39:22
    Welcome.
  • 00:39:23
    Thank you, Madam Chair and committee members.
  • 00:39:28
    I have to get a pickleball lesson someday from you.
  • 00:39:30
    Something I haven't done.
  • 00:39:34
    Members, I think that it's always interesting to think about the capital budget in public works since so often I think our residents and visitors think of public works as the capital expenditures of the city.
  • 00:39:51
    and of course we did get to present our budget but I am pleased today to be able to present our overall capital plan.
  • 00:40:01
    So let's see, I'm gonna see if these buttons work down below and they do.
  • 00:40:04
    So we'll start with our overall themes in 2024.
  • 00:40:10
    Of course, many of you have had experiences in your wards with aging infrastructure.
  • 00:40:18
    and we want to make sure that we are investing in that aging infrastructure because it still is an asset to our residents and visitors to the city as well as in our utility funds being able to manage the rates
  • 00:40:35
    that people are paying.
  • 00:40:37
    We of course also have faced cost constraints and increasing cost pressures on critical elements of capital projects and the supply chain difficulties that we continue to face.
  • 00:40:56
    It is easing up out there, but we still are feeling that supply chain problem.
  • 00:41:03
    And then being able to balance the available funding across many, many competing priorities within divisions of public works and across public works.
  • 00:41:15
    and then finally something near and dear to many of your hearts is maximizing those outside opportunities to be able to bring in funding.
  • 00:41:23
    I just want to report that in 2024 and 2025 for our capital program we have already secured 96 million dollars of county, state and federal grants in the transportation and public works area.
  • 00:41:41
    So I think that's exciting.
  • 00:41:42
    There are more opportunities
  • 00:41:45
    through IIJA, the federal bill, as well as the investments that the state is making in transportation, water, and other areas.
  • 00:41:57
    I'm not going to spend a ton of time on each of the detailed slides for you because
  • 00:42:03
    I'm trying to pull out and we've tried to pull out exciting parts of these slides, but I want to say that street paving as a funded area is really should say something more like street paving and projects that advance the policy and modal goals of the city.
  • 00:42:22
    It's well beyond only street paving.
  • 00:42:25
    It includes things that are like the ADA ramp program.
  • 00:42:32
    We have two slides here that come through with the budget numbers.
  • 00:42:37
    One I want to point out at the top of this slide for you is PV074.
  • 00:42:43
    That is the fund that Public Works uses to contribute to many of the local funding projects that we have to participate in and want to participate in with Metro Transit, with Hennepin County, with MnDOT, where assets exist within the city.
  • 00:43:02
    We really could not talk about paving and cooperative projects without talking about the 20-year street funding plan and how it guides our work.
  • 00:43:13
    The plan really is a balance of the traditional asset
  • 00:43:18
    conditions of the infrastructure, what that condition is today, safety, utility needs, and then using our racial equity framework and equity considerations to be able to make these recommendations and bring them forward.
  • 00:43:36
    Paving projects also are guided by the right fix at the right time.
  • 00:43:41
    Many of you are familiar that we use strategic investing, things like deploying resurfacing and rehabilitation to extend the life of that street out and so that we are
  • 00:43:57
    hopefully at the right time entering into the full reconstruction of a street.
  • 00:44:03
    Full reconstruction is an expensive prospect.
  • 00:44:07
    It also is the moment in time when we can realign the street with our modal goals, being able to do a better job of putting safe walking facilities and biking facilities directly into that street design.
  • 00:44:24
    and in this area $25.1 million in federal funding in 24 through 27 which will help us accelerate things like the ADA ramp work.
  • 00:44:39
    Last year the legislature did help fund in a capital fund more of this ADA work.
  • 00:44:46
    Right now we are averaging over a thousand ADA ramps and intersections per year.
  • 00:44:56
    All right, active transportation and Vision Zero, something that we talk about a lot in the Public Works Committee.
  • 00:45:04
    This CIP category is targeted at pedestrian and bicycle programs.
  • 00:45:11
    And of course, the Vision Zero program is also showing in this line, so VZ001 shows you the match should we receive the Safe Streets for All federal money.
  • 00:45:26
    so that we are ready and prepared to meet that match and be able to deploy those resources.
  • 00:45:32
    Furthermore, on active transportation, of course the goal here is improving and expanding pedestrian and bicycle networks outside of the street reconstruction projects that I just spoke of a moment ago to be able to provide that safe, convenient
  • 00:45:49
    and comfortable mobility option for people.
  • 00:45:52
    We have in this category major trail maintenance, protected bikeways, pedestrian safety and the ever popular Safe Routes to School program that we often are partnering with the state of Minnesota on.
  • 00:46:11
    Vision Zero.
  • 00:46:12
    I want to talk just a little bit more about this.
  • 00:46:15
    We have been utilizing the quick build or rapid build safety improvement model in this area to reduce crashes on our street and fatal crashes and serious injury crashes with the goal of getting to zero traffic deaths and severe injuries by 2027.
  • 00:46:37
    Currently, we are scoping out for the 28-29 grant cycle in this area, and of course, we are awaiting the news on our improved application for the Safe Streets for All program through the IIJA federal program.
  • 00:46:58
    We should be hearing soon, December, the latest would be January,
  • 00:47:04
    and I did speak to this in our budget presentation but one of the things we have really done here is done a much more intense review of our own application to help with our competitiveness and so we are hopeful here.
  • 00:47:22
    I'm gonna talk a little bit about the sidewalk funded category for pedestrian improvements
  • 00:47:29
    and going over here to see an example of what it looks like to be able to provide really accessible and safe crossings at our sidewalks.
  • 00:47:45
    Being able to do this in a way that really mirrors the transportation action plan pedestrian priority network.
  • 00:47:54
    and makes the priority out of that network as we're moving forward.
  • 00:48:00
    You've heard us speak of this ADA ramp work and sidewalk work and how it is going to take a long time without outside assistance to meet the ADA ramp requirements.
  • 00:48:12
    But here in sidewalks, we also are using the pedestrian priority network to be able to guide that work.
  • 00:48:21
    Next up, traffic control and street lighting, a popular topic that we have talked about many times.
  • 00:48:30
    And I'm going to move over here to say that, you know, one of the important parts of this, and actually here you can see the Barnes Dance intersection, which is at the corner of Bede Makoska, where people now can cross
  • 00:48:46
    not only from corner to corner, but kitty corner safely across the intersection.
  • 00:48:52
    It's taking people a little bit of time to adapt to this type of intersection, but we do know that it's safer.
  • 00:49:00
    People are less likely to try to dash across when they do not have the walk light.
  • 00:49:08
    And because it's such a busy intersection, this is really a safety improvement at this particular spot.
  • 00:49:14
    We want to be able with this area to improve safety for all users of the system, those who are driving with the traffic and street control system, but also pedestrians and bicyclists, everyone who's coming through the city, and really being able to figure out the best solution at the best place.
  • 00:49:38
    And here we have 16.5 in federal funds in 24 through 27.
  • 00:49:44
    We are hopeful for more success going forward and this is important to us to just keep our momentum going in traffic control and street lighting.
  • 00:49:59
    Bridge Funded Projects.
  • 00:50:02
    So we have had a lot of bridges this past year that have been getting our special attention, partly because they have needed to be either temporarily closed or evaluated.
  • 00:50:15
    And we have, I think, successfully been able to use something like BR 101, which is actually a line in this budget that helps us make small repairs on an annual basis.
  • 00:50:28
    and we have had to utilize those funds in the past.
  • 00:50:31
    We will need more of them going forward.
  • 00:50:33
    We also have funded in this in this CIP the Midtown Greenway, a Midtown Greenway bridge.
  • 00:50:42
    The Greenway bridge over that it's joint funded with HICRA
  • 00:50:46
    through leveraged federal funding with MnDOT.
  • 00:50:50
    I want to talk a little bit more about the state of good repair for bridges and how important this is.
  • 00:50:56
    So the program highlights here include major bridge rehabilitation and the Nicollet Bridge over Minnehaha Creek, which we often speak about.
  • 00:51:07
    We are going to resubmit for the federal bridge improvement program.
  • 00:51:12
    There was a change in the program that has
  • 00:51:14
    pushed us
  • 00:51:33
    The first round of this program, we would have had to resubmit if you weren't successful each time.
  • 00:51:39
    The federal government has decided that that is not a good use of public money because it does cost us somewhere between $50,000 and $60,000 to apply for a grant like this.
  • 00:51:52
    We have decided that it is worth it to put ourselves back in queue to see if we can win a BIP here.
  • 00:51:59
    and also partner that with hopefully some state bonding dollars this coming year.
  • 00:52:05
    Also, the 18th Avenue and Grand over the Midtown Greenway, that's where I was getting caught up.
  • 00:52:11
    I wanted to talk about this bridge.
  • 00:52:13
    This is added and will be available funding through IIJA with help from MnDOT for $12.3 million combined into the future.
  • 00:52:25
    Greenway bridges are a continued issue.
  • 00:52:28
    We are working on this issue.
  • 00:52:30
    Currently Hennepin County owns the bridges.
  • 00:52:33
    When they are repaired, we will then own the bridges going forward and so they need to be in a state of good repair before we receive them.
  • 00:52:41
    So this is very much a partnership approach.
  • 00:52:44
    It would not be a capital improvement program presentation by Public Works if we did not talk about meeting the 20-year street funding plan.
  • 00:52:56
    And so, again, just for review, and I don't know if I can do it totally quickly, but if you drew the imaginary line across $10 million, that is the net debt bond support
  • 00:53:09
    for the 20 year street funding plan.
  • 00:53:12
    On top of that, $21.2 million is provided.
  • 00:53:17
    The purple dotted line is what you, that's our funding target, often referred to as A plus B.
  • 00:53:25
    What you're seeing in this slide is that the city alone with its funding cannot always meet A plus B.
  • 00:53:33
    The funding target, the purple line,
  • 00:53:35
    but with outside funds, we are often able to meet that goal and go beyond.
  • 00:53:42
    And there are some reasons that this has been a challenge.
  • 00:53:47
    I would say a couple of those big reasons are when the 20-year street funding plan was put into place, there are a number of things that do not count towards meeting that funding goal, things like active
  • 00:54:02
    transportation and that active mobility work.
  • 00:54:06
    The ADA ramp work does not count towards meeting the street funding goal.
  • 00:54:13
    And so because that base did not include that, that means that the base erodes over time.
  • 00:54:21
    It also means that we do have some challenges with that net debt bond, $10 million.
  • 00:54:33
    And certainly finance could speak more to that in terms of where that is at today.
  • 00:54:39
    But what you will see out into the future right now in 25 and 26, we do not look like we will meet the street target
  • 00:54:48
    goal.
  • 00:54:49
    However, should additional monies come in, the Nicollet Bridge would be a fine example of that and other issues like that, we could go and surpass it.
  • 00:55:02
    So the critical thing here is the city funding alone will not help us meet our meet our goal.
  • 00:55:10
    We do need outside partners and outside funding to be able to meet this goal at this point.
  • 00:55:18
    Our fleet, most I think everyone, all of you know, but people watching or listening to this may not know that Public Works actually is the fleet manager for the entire city fleet.
  • 00:55:33
    I always say with the exception of garbage trucks, but because solid waste and recycling is within Public Works, we also have garbage trucks.
  • 00:55:42
    and so we do manage the entire city fleet.
  • 00:55:46
    What you're going to see here today is I would love if in the future we get FLT Fleet 01 fuel and charging stations to be fuel and charging stations plus EV charging because that's what this really represents is that most new capital monies are going into roughly 50 EV charging stations
  • 00:56:12
    charging stations per year.
  • 00:56:15
    We have 69 planned for 2027.
  • 00:56:17
    We also have some shop equipment needs, and I could detail those for you as well.
  • 00:56:25
    And we are looking to upgrade our vehicle management system, the IT backbone of that.
  • 00:56:32
    So in Fleet and Parking, of course, we collaborate with the users of our system across the city, other city departments to make sure we are meeting their vehicle needs, and also reducing our carbon footprint.
  • 00:56:47
    And we have been doing an amazing job of that.
  • 00:56:50
    The biggest barrier in the last 18 months to two years has actually been the supply chain issues.
  • 00:56:57
    of being able to get fully electric or new hybrid vehicles in here, we do see that that is starting to ease now.
  • 00:57:05
    So we have the budgeted source for the EV charging stations here.
  • 00:57:12
    We also have had some reduced capital expenditures with parking.
  • 00:57:18
    and that is largely due to change in work patterns with our off street system and then our team and I talked about this a little bit in our budget presentation.
  • 00:57:29
    that our team has been working very collaboratively with users of our ramp system to find new ways to meet the hybrid work need going forward.
  • 00:57:42
    And then that really gets to that last point.
  • 00:57:46
    And of course, the on-street system continues to get upgrades as well.
  • 00:57:53
    Sanitary sewer funding projects here.
  • 00:57:58
    Just top line, 830 miles of pipes in the sanitary sewer system.
  • 00:58:05
    The city owns 10 lift stations.
  • 00:58:08
    And we really use that asset management framework to manage this system.
  • 00:58:13
    being able to determine whether it's a rehabilitation or a total rehab of some part of the system.
  • 00:58:22
    We use televised baseline assessments to make sure we know where we're at and I'm gonna move over here to just show you kind of more what it looks like because this is something that of course is critical to city operations but often people don't get to see
  • 00:58:41
    what the system looks like the tunnel and sewer rehab the ability to Maximize when we are out there doing a paving project to actually do the sewer rehab work as well and This is an area where over 50% of sanitary sewer mains are a hundred years old and
  • 00:59:08
    and so being able to make this investment, 80% of the remaining are 80 years old or older and so we really do need to continue to make progress here and I wanna thank you for all the past progress we've been able to make but we do need to continue to use our utility funds to be able to keep it going.
  • 00:59:35
    Stormwater funded projects are next up on the list, 556 miles of pipes, 23 pump stations for stormwater
  • 00:59:47
    and 46,000 catch basins.
  • 00:59:51
    This is important.
  • 00:59:53
    Our partners are here from the park board.
  • 00:59:55
    This is the work that we have been working on with them as well to make sure that we are improving water quality that is coming into our lakes and the rivers.
  • 01:00:06
    And so these investments help us do that.
  • 01:00:12
    Particularly here, we look at things like flood mitigation so that we don't have other infrastructure damage or needing further rehabilitation because we're actually mitigating floods.
  • 01:00:25
    We have the storm water paving projects where we go in as we're doing the paving and doing the work.
  • 01:00:33
    The storm drain tunnel and rehab four million dollars and then being able to meet our regulations from both the city ordinances as well as federal requirements a million dollars here.
  • 01:00:49
    just looking if, okay, and then water distribution.
  • 01:00:53
    So a good, I guess, fun fact for everyone today is that our water distribution system, the assets of that system alone are worth over $2 billion.
  • 01:01:05
    So keeping this system in good repair is not only a public health issue but a wise investment overall to not face the sorts of things that we have in the recent past,
  • 01:01:18
    that will help protect that over $2 billion in assets.
  • 01:01:39
    The program split here is seven projects that will improve treatment and pumping infrastructure, three in distribution and metering, three in facility improvements, which also we do hope that we are to a resolution on the Hiawatha campus issue soon.
  • 01:02:04
    and we can move forward with being able to provide residents better service within the city in water distribution as well as our employees the type of space that they deserve to be working in in the future.
  • 01:02:19
    and so the other piece of this is to just say again, water distribution drinking water provides safe, clean drinking water to over 500,000 residents every day in Minneapolis.
  • 01:02:35
    Also to seven other municipalities through our water sale system and that is 100,000 metered accounts
  • 01:02:47
    I think ending on this good note, one of the things that we are very proud of, I actually got to go to water safety days today to talk to about 45 of our employees.
  • 01:02:58
    I thank them on your behalf for their good work, but also shared how proud we are.
  • 01:03:04
    At the state fair, there was a water tap contest, a taste test contest, and Minneapolis won.
  • 01:03:13
    And that's a recurring theme here because we also won Best in Glass for our taste test at the Minnesota American Water Works Association annual conference.
  • 01:03:25
    This is a moment of pride for our employees that work in this area.
  • 01:03:30
    It should also be a moment of pride for all of you if the investments that have been made over the years to have the best drinking water, I believe, in the country.
  • 01:03:40
    and we should celebrate that far more often.
  • 01:03:43
    What supports that?
  • 01:03:45
    Over a thousand miles of pipes.
  • 01:03:47
    It supports the fire department in their critical work with 8,000 fire hydrants and overall 15,000 valves that we need to maintain.
  • 01:03:57
    So being able to continue this investment is important to us all.
  • 01:04:02
    Madam Chair, that ends my work.
  • 01:04:07
    I want to thank our team, particularly Nathan Koster and Katie White who help us prepare the presentation and of course, Deputy Director Jelly who oversees many of the administration and budgeting areas.
  • 01:04:23
    So I will stand for questions.
• • Emily Koski
  • 01:04:25
    Thank you, Director Anderson Kelleher.
  • 01:04:27
    We have a few questions or comments.
  • 01:04:30
    Councilmember Payne.
• • Elliott Payne
  • 01:04:31
    Thank you Madam Chair and thank you Director.
  • 01:04:34
    I have a question about the street paving program.
  • 01:04:37
    First, many, many, many, many thanks for increasing our Parkway Paving Program from our 1999 level of investment to something that reflects the need and the costs today.
  • 01:04:51
    So I'm really glad to see that going up to $2.7 million.
  • 01:04:54
    But I actually just met with some constituents this morning and they were lamenting about the quality of their alley.
  • 01:05:01
    And I'm wondering if we're in a similar situation as we are with
  • 01:05:05
    you know the history of our Parkway maintenance program you know how long has it been fixed at this $250,000 a year and I'm curious as to how that budget is allocated I know I have
  • 01:05:19
    I talked to a resident some months back and they think they have the oldest alley in the city.
  • 01:05:25
    It's not paved technically.
  • 01:05:28
    So I have another constituent whose alley had a lot of water logging issues and even gotten so far as meeting with staff and there just wasn't budget for it.
  • 01:05:38
    So I'm just curious, you know, do we need to look at this fixed $250,000 a year and
  • 01:05:45
    Consider the alley conditions and whether or not that's the right number and then I was just also curious about how we like prioritize that investment So madam chair and councilor payment.
• • Margaret Anderson KelliherDirector of Public Works
  • 01:05:56
    I will begin and see if anyone else wants to jump in No one's making immediate eye contact in the team.
  • 01:06:02
    So that makes me a bit nervous about this one but I think I will channel someone who's sitting on the dais who would tell you that There used to be an alley paving program.
  • 01:06:12
    We moved away from that.
  • 01:06:13
    We are putting our resources into
  • 01:06:16
    The ADA ramp upgrades and other upgrades that are on the street.
  • 01:06:22
    So that is one issue there are.
  • 01:06:24
    I don't know exactly how many remaining.
  • 01:06:28
    alleys that aren't paved in the city but there are a number.
  • 01:06:31
    The second part of that is I think we should have a longer discussion about what is needed for alley maintenance because in some cases we have had issues that are surface water and sewer related and we have been able to go out and correct for those issues.
  • 01:06:51
    Sometimes it's a sloping, drainage issue, sometimes it's just where that
  • 01:06:57
    where that drainage is in the alley and being able to fix it.
  • 01:07:02
    I think we should have a conversation about whether this is the right amount going forward and how we might what the need is and what we might tackle.
• • Elliott Payne
  • 01:07:13
    Yeah, I'd be happy to participate in that.
• • Margaret Anderson KelliherDirector of Public Works
  • 01:07:15
    Thank you.
• • Emily Koski
  • 01:07:17
    Thank you.
  • 01:07:17
    I have Councilmember Payne and Goodman, but I see Wonsley was, no, okay, all right.
  • 01:07:25
    Is it okay?
  • 01:07:26
    I'm gonna go to Councilmember Goodman, Councilmember Goodman, please.
• • SPEAKER_17
  • 01:07:29
    Great, thank you.
  • 01:07:30
    Really great presentation.
  • 01:07:32
    I think it was super thorough so congratulations to your team and really easy to understand.
  • 01:07:38
    There are about 70 unpaved alleys in the city and everyone who lives on one would tell you theirs is the worst and that's probably because they are.
  • 01:07:48
    And we used to
  • 01:07:50
    partner with the owners.
  • 01:07:52
    So we would put up a small amount of a match, but now we won't even tell them how much it costs.
  • 01:07:57
    And even worse, we don't let them do the work.
  • 01:08:01
    So even if they wanted to do it, they kind of can't do it.
  • 01:08:04
    But the capital budget in Public Works is enormous.
  • 01:08:09
    and so it would take some council members and political will to say let's move something from this to that.
  • 01:08:16
    It's a matching program so it has lots of leverage of private funds and so I would urge anyone to work with Public Works and find out where they think there might could be a change.
  • 01:08:26
    They're just operating from where they were told
  • 01:08:29
    to put funding, which was in the ADA pedestrian ramps, which has been a really good program.
  • 01:08:34
    But I wouldn't urge us to just pull, like I would say let's take out that Hennepin Avenue project.
  • 01:08:39
    That's 24 million.
  • 01:08:40
    We could probably pave every alley in the city if we do that.
• • Margaret Anderson KelliherDirector of Public Works
  • 01:08:48
    Madam Chair, I don't think that's possible.
• • Emily Koski
  • 01:08:51
    Thank you.
  • 01:08:52
    I was hoping you might clarify.
  • 01:09:03
    All right.
  • 01:09:05
    Thank you.
  • 01:09:05
    Thank you for clarifying what we can and cannot do at the moment, too.
• • Linea Palmisano
  • 01:09:10
    I appreciate that.
• • Emily Koski
  • 01:09:14
    I am not seeing any further.
  • 01:09:16
    Oh, no.
  • 01:09:17
    Vice President Palmisano.
• • Linea Palmisano
  • 01:09:19
    Thank you Madam Chair.
  • 01:09:20
    As someone who got one of the precious alley paving projects in my ward just a few years ago, there are still alleys all over Minneapolis that aren't paved like Councilmember Goodman said.
  • 01:09:32
    It's interesting too because so much of the language that we use around some of our new reconstruction projects is about being able to make things pervious again.
  • 01:09:41
    Overall, alleys and the unpaved alleys that I've had to have conversations with constituents of are just the ones that are in really bad shape over the years is that it is a massive drainage problem for people that have to live on these unpaved alleys and it does cause problems in their
  • 01:10:01
    in the dwelling units, the apartments and homes, the residential homes that back into them.
  • 01:10:10
    They become difficult to navigate during regular weather conditions and sometimes absolutely treacherous in winter conditions.
  • 01:10:18
    I do know that there are some significant drainage issues with the LA
  • 01:10:24
    with the alleys that do exist because they are so old.
  • 01:10:27
    Can you help us understand what the assessment goes to in an alley renovation?
  • 01:10:32
    And if there's nobody here, I can just follow up later on that.
  • 01:10:36
    I know that I have a feeling that Larry Matsumoto would be my go-to to ask such questions.
  • 01:10:42
    But I think there is an assessment rate in the alley.
  • 01:10:46
    I think it's less than
  • 01:10:47
    Committee.
• • Margaret Anderson KelliherDirector of Public Works
  • 01:11:04
    The 70 alleys remaining probably touch every ward.
  • 01:11:07
    So I think a follow-up meeting to talk about what that assessment rate would pay for and what it would look like.
  • 01:11:15
    I do know that in the past there were some other options available to neighborhoods when the NRP program was fully running.
  • 01:11:23
    I know a number of neighborhoods utilize some leveraging of dollars to pave alleys and there are
  • 01:11:31
    You are correct.
  • 01:11:32
    There are very serious issues with being able to traverse these alleys when they're not paved.
  • 01:11:41
    There can be water quality issues, too.
  • 01:11:43
    You're right.
  • 01:11:43
    We don't really want to make more surface that water can't get through, but actually having surfaces that aren't well maintained
  • 01:11:53
    that have a lot of runoff, then also can cause problems for water quality.
  • 01:11:59
    And so I think this is a discussion we should continue to have, and it looks like there's enough interest that we'll gather a meeting together to talk about it.
• • Emily Koski
  • 01:12:10
    Great.
  • 01:12:10
    Thank you.
  • 01:12:11
    All right.
  • 01:12:13
    I am not seeing any further comments or questions from colleagues.
  • 01:12:17
    Thank you so much for the thorough presentation.
  • 01:12:19
    Next, we have debt service.
• • SPEAKER_18
  • 01:12:27
    Chair Koski, Adam Blum with the Budget Office again, or Budget Division again, excuse me.
  • 01:12:33
    Debt service will be delayed.
  • 01:12:35
    There was some scheduling issues, so we'll postpone that until another time.
  • 01:12:39
    So that concludes our presentation for today on the capital budget.
• • Emily Koski
  • 01:12:42
    Okay, thank you so much.
  • 01:12:44
    I appreciate that.
  • 01:12:47
    We are now going to move into two other presentations.
  • 01:12:50
    I just want to make sure we're on a time check here.
  • 01:12:52
    We have another hour scheduled for Budget Committee here.
  • 01:12:56
    I also just want to note that we've been joined by Councilmember Goodman, Councilmember Ellison, Councilmember Wonsley, and Councilmember Payne as well.
  • 01:13:04
    So our next presentation is from the Park and Recreation Board, and I invite Superintendent
  • 01:13:11
    to give that presentation.
• • SPEAKER_12
  • 01:13:13
    Welcome.
  • 01:13:36
    All right, thank you Chair Koski, Vice Chair Palmisano and Council members.
  • 01:13:43
    It's a really privilege to be here today and to walk through the recommended 2024 budget and to really share the park board's projections in our budget for 2024.
  • 01:13:55
    I would start by saying, which I think is important, is grateful I am of a really wonderful staff that have done incredible work around this budget during the last
  • 01:14:05
    this last year.
  • 01:14:06
    It took a lot of work and dedication.
  • 01:14:09
    I would thank Director Weissman and Manager Rosen from the finance areas that have committed and done a tremendous amount of work around that.
  • 01:14:21
    I also put forward to the staff when we met around the budget and I said to them that we want to focus on current service level and so I directed the staff to look inward to the departments and to work through the budget process at current service level.
  • 01:14:35
    They did a wonderful job if they had any impacts or challenges they then went to the division and then if the division still had challenges they went across divisions and then if that was challenges there as far as position or need then they came to the executive team and we made some very difficult and hard choices but it was a really really good budget process and I want to thank our staff and thank our finance area for the work that they had done to get here and I'm very grateful and also it's a privilege to be here in front of you today
  • 01:15:04
    So what I want to do is just kind of ground real quickly and work through this to talk about how the foundation in developing this 2024 budget for the park board.
  • 01:15:16
    On April 12th we had the adoption of the parkway and stormwater resolutions and those resolutions were resolution 2023-54 requesting the City of Minneapolis to increase parkway paving and related infrastructure investment
  • 01:15:33
    The second resolution was resolution 2023-55 requesting the city to provide dedicated sustainable stormwater utility fee funding to support the management of the NPRB owned stormwater infrastructure on park property.
  • 01:15:50
    These investments are included in the mayor's 2024 budget, recommended budget, and we are grateful for our partners and public work and the work we have done to get to this point.
  • 01:16:00
    So we are very grateful and excited about
  • 01:16:03
    In May of 2023, the budget retreat discussion with the board, which is always really fun, we reviewed the budget process, the history, and the financial projections of our system.
  • 01:16:20
    We identified budget priorities and funding strategies, and we assessed current service level and maximum property tax levy with the board.
  • 01:16:32
    and continuing our foundation for developing the budget on April, oops sorry, move this, oops, oops, go back.
  • 01:16:45
    In September of 2023, with the adoption of the maximum 2024 property tax levy request, the Commissioners voted unanimously to request the Board of Estimate and Taxation, the BET, to set the maximum 2024 tax levy request to 5.35%.
  • 01:17:07
    What this included was the current service level, the youth investment, and also the strategic direction D, which was care for our park asset investment.
  • 01:17:17
    And those requested levy and what we asked for aligned with the mayor and the BET and it passed and the NPRB maximum tax levy request of 5.35%.
  • 01:17:33
    Also around this, what's very important is the board was very committed to several things and we'll get to the strategic directions in a moment here, but the board was very clear and committed to serving the youth of Minneapolis, caring for park assets and our stewardship of those assets, caring for the environment and what you would hear a lot of times was climate resiliency efforts and identifying new funding sources for our park system.
  • 01:18:02
    So the really important thing to know is that we have a 2023 to 2026 strategic directions, and those directions and performance goals was adopted by the board in May of 2022.
  • 01:18:16
    What I always tell folks when I came in in 2019 was that I based my performance as the superintendent on these strategic goals and strategic directions by the board in the four years, and that also reflects through the organization.
  • 01:18:32
    So these directions, performance goals are very important and there's five of them that I will briefly go through.
  • 01:18:40
    And this budget was, of course, reflective of those goals.
  • 01:18:44
    Strategic direction A was to act boldly for our climate future.
  • 01:18:48
    And what we talked about as a board, as an organization, is reduce the carbon footprint
  • 01:18:53
    implement resiliency projects in service area master plans and our ecological plan and to also analyze park visitor modes of park access to create baseline data for future decisions.
  • 01:19:07
    And reflective in our 2024 budget is the Graco Park Building, which is the first net-zero building in the MPRB system.
  • 01:19:15
    If you ever had an opportunity to look at our website and look at the actual animation of it, it is just going to be an amazing, amazing place along our river.
  • 01:19:23
    And we're very, very proud of that.
  • 01:19:25
    And we will soon be visiting that wonderful place soon once we get done.
  • 01:19:29
    But again, it's our first net-zero building in our MPRB system.
  • 01:19:34
    and we're also looking at the exploration of the Xcel Energy Solar Rewards community and that is around our solar energy arrays and our solar panels.
  • 01:19:42
    Very exciting work that we're doing there to continue to build upon that through our park system.
  • 01:19:48
    and the formal criteria for evaluating new equipment purchases and replacements to reduce fuel consumption, minimize pollution emissions and improve operations.
  • 01:19:57
    And a very simple thing that I just gave in one of my reports to the board recently was the purchase of push mowers that are all electric.
  • 01:20:04
    Obviously, we do have more than that in our system with a lot of our operating our vehicles a lot of our maintenance equipment that we're using around our system But that's just a simple example that I just shared recently with you know with push mowers across our system through Toro The next strategic direction these cultivate each community's place and honor cultural traditions in Minneapolis parks and
  • 01:20:31
    The Board spoke specifically to enhanced and unified organization-wide volunteer management and enhanced community safety and park police engagement activities.
  • 01:20:41
    Reflective in our 2024 budget is positions to add the capacity to support volunteer engagement
  • 01:20:48
    With that, we have a volunteer program aide, a horticultural crew leader, a certified part-time Eloise Butler Wildflower Garden program administrator.
  • 01:20:58
    Those are all part of the budget.
  • 01:21:00
    We also are working very hard on our indigenous acknowledgement training through our parks and our indigenous reconciliation plan.
  • 01:21:07
    If you have a moment to look even at our Parks for All comprehensive plan, it's very clearly spelled out there on acknowledgement and the work that we are doing around this work.
  • 01:21:18
    as it relates to cultivating each community's place in honor of cultural traditions in Minneapolis.
  • 01:21:25
    Strategic direction C, implement quality youth and intergenerational programs.
  • 01:21:30
    The Board was committed to implement quality youth and intergenerational programs and ensure its success through several areas.
  • 01:21:37
    Program capacity measurement, multi-tiered program evaluation, and enrollment tracking.
  • 01:21:44
    Staff know obviously when I came in I'm very much committed to data and not just talking about qualitative data but quantitative data.
  • 01:21:53
    and being able to respond back to our constituents, our city, our council members, all of you, the successes or the challenges that we have within our system particularly around our youth and so we're very committed to this and I could go on I'm sure for about a half an hour on the work we're doing within recreation as an example but this is a very clear direction by this board and in the budget you will see the 2024 includes
  • 01:22:18
    the year three of the six-year funding agreement with the city which we're incredibly grateful for.
  • 01:22:24
    The property tax levy increase of $260,000 each year through 2027 and also next year the final year of the ARPA funding.
  • 01:22:33
    I also want to mention at this time that's not on here is that we do find a gap in 2025 and 26
  • 01:22:40
    of over $640,000 in 25 and then about over $400,000 in our projection in 2026.
  • 01:22:48
    So we're going to continue to work on solutions there but also work the city on that gap as we get to the $2.6 million in the general fund to our youth funding in 2027.
  • 01:23:01
    We continue to work on free youth programming in areas of city-wide with the greatest needs.
  • 01:23:06
    We focus on our ACP and ACP50, but we also don't turn any youth away for any programs.
  • 01:23:12
    We're very clear about that.
  • 01:23:14
    We have a scholarship program that we put into our system that any youth can access or any family can access.
  • 01:23:18
    but all of our programs not only do we have based in 17 centers or I think 17 could be a little less than that we have free programs but all other centers and programs are always accessible to our youth and are free through scholarships and through access in our rec centers.
  • 01:23:34
    we also are putting a part-time inclusion staff hours for our rec plus program and our naturalist program coordinator focused on youth and teen programs and also very excited to announce of course I'm sure you're all aware of the youth employment funding of 1.5 million dollars received from the state in the 2023 legislative session which is our teen team works program and that is going to give more access to a lot of our youth for programs and for jobs but really working around green infrastructure and green jobs to our our park system
  • 01:24:04
    and I also want to give a thanks to Senator Fateh and also Representative Hassan who carried this and it is a really significant opportunity for our young people to not only put money in their pocket but to have incredible jobs which Minneapolis Park and Recreation Board is one of the largest employees of course of youth and this is just a wonderful, wonderful opportunity for our young people and we're working very hard on connecting them to opportunities in our park system and jobs.
  • 01:24:31
    Strategic Direction D, care for our park assets to meet the evolving needs and practices.
  • 01:24:36
    Along with this, we spoke directly to increase the rate of parkway paving and reconstruction, which we've talked about, increase the percentage of assets that are within the expected lifespan of our park system, establish the level of service standards for the top 10 assets within our park system, and also to increase the advancement of policy items identified in our system-wide master plan
  • 01:25:01
    implementation tracker so within the budget we focused on of course our parkway investment beginning in 2025 incredibly grateful for that and the work again with the city and the public works also our stormwater fee and investment those are two incredibly important legacy moments for our park system and to take care of our assets and stewart not only our water bodies but to also take care of our parkways throughout our system
  • 01:25:28
    our park project and system analyst to support the work to identify and implement an asset management life cycle.
  • 01:25:36
    and that is the one position that I mentioned earlier that was supported in the tax levy.
  • 01:25:41
    A very important position that'll be doing really great work for our park system.
  • 01:25:47
    And then of course the reallocation of resources to fund needed positions in the asset management department.
  • 01:25:52
    And as I mentioned earlier, staff had done a great amount of work around looking internally and finding those impacts and solutions within their divisions and departments.
  • 01:26:02
    So we have a horticulture crew leader,
  • 01:26:04
    a park keeper position, an MEO and an HVAC technician that will be part of our work and our system going forward.
  • 01:26:14
    And the last, strategic direction E, steward our natural resources, which is very, very important to this board and to me and to our organization, of course.
  • 01:26:24
    And what was in there was called the natural management, growing our public tree canopy and improving our water quality through the BMP management of our infrastructure and our parks.
  • 01:26:37
    Within the budget, we have an enhanced natural area management with ongoing state operations and maintenance funds, and we have added a volunteer program aid and seasonal natural resource specialists.
  • 01:26:51
    We also are going to implement our stormwater enterprise fund, and within that, we're adding our engineer and an increased part-time provisional staff hours and our continued work around our tree canopy.
  • 01:27:05
    Planting at least two trees for every tree removed, focused on the two major heat islands within the city and through the ARPA funding.
  • 01:27:16
    So we're all so grateful for that because we know continuing that's going to be very important.
  • 01:27:20
    So our work that we're participating with our urban tree carbon offset program
  • 01:27:25
    through the partnership with Green Minneapolis.
  • 01:27:29
    So with that, I am going to turn this over to Director Weissman and Chair Koski, I think we have a good visual for you that shows your courts.
• • SPEAKER_06
  • 01:27:44
    Chair Koski and Council Members, before I get started, I just want to point out that the email that you received from the Park Board includes a copy of our recommended budget.
  • 01:27:58
    It also includes a very detailed CIP that Director Arvinson puts together each year
  • 01:28:07
    So if you're interested in specific parts of the city or specific projects, it's all detailed here.
  • 01:28:15
    There's lots of notes to identify those.
  • 01:28:21
    And then you also received our NPP 2020-2022 Annual Report.
  • 01:28:30
    And we will speak on that briefly when we get to the capital section.
  • 01:28:37
    So our recommended budget contains different sections, and this presentation is set up for those sections.
  • 01:28:45
    So the budget message is what the superintendent just delivered for you.
  • 01:28:51
    The next area are our budget highlights, and it details changes in each fund and each department within those funds that are included in the 2024 budget.
  • 01:29:06
    The next section is our strategic directions and performance goals.
  • 01:29:10
    And again, these were adopted in May of 2022.
  • 01:29:13
    They are the short term implementation of our Parks for All comprehensive plan.
  • 01:29:22
    and it guides the implementation of that plan over the next four years.
  • 01:29:27
    It includes performance goals which are measurable performances by which the superintendent and park board staff are measured for implementing these goals and it also includes budget actions that each department has put together
  • 01:29:45
    as their budget action plan for the next four years to meet the performance goals.
  • 01:29:54
    The next section is the background information with our service areas, as well as our org chart and some fund descriptions and acronyms.
  • 01:30:04
    Then we get into the financial sections of the annual budget.
  • 01:30:09
    So property taxes, again, we spoke to the 5.35%
  • 01:30:15
    Maximum property tax levy request, it's $82.6 million.
  • 01:30:20
    This budget is being presented utilizing the full maximum property tax levy request.
  • 01:30:28
    We are 17.5% of the total city of Minneapolis tax base.
  • 01:30:36
    Local government aid, we received the city
  • 01:30:40
    as well as the park board received an increase this past legislative session.
  • 01:30:46
    So for the park board, our local government aid is increasing by just over $800,000.
  • 01:30:52
    So next is our general fund.
  • 01:30:58
    So our property taxes are increasing by the 5.35%
  • 01:31:04
    but our overall general fund budget is only growing by 3.3% and you'll see some changes in our fees, fines and other revenues and you'll see the decrease in the American Rescue Plan Act as that
  • 01:31:23
    phases out with 2024 being the last year.
  • 01:31:27
    The changes in fees, fines, and other revenues, part of that is the shift of where we will be accounting for the stormwater fees.
  • 01:31:40
    Currently, we have water quality monitoring and water education
  • 01:31:47
    that's included in the enterprise fund.
  • 01:31:49
    But with the implementation of this new fee, we are creating an enterprise fund to account for all of that.
  • 01:31:56
    So that is being shifted over into that area.
  • 01:32:02
    So on the revenue side, the biggest piece to understand about the park board budget is the general fund is supported.
  • 01:32:10
    79% of the budget is property taxes.
  • 01:32:14
    So we are very
  • 01:32:15
    heavily reliant on property taxes for the delivery of services that we do throughout our system.
  • 01:32:24
    On the expenditure side, you'll see that wages infringe and operating costs are increasing based on the wage pressures as well as inflationary pressures.
  • 01:32:37
    And again, in our general fund,
  • 01:32:40
    72% of our budget is personnel costs.
  • 01:32:44
    So it takes a lot of personnel to operate our fabulous park system.
  • 01:32:51
    Our expenditures by division, you'll see that our enterprise stewardship area
  • 01:32:58
    is almost 50% of the general fund budget.
  • 01:33:02
    So that includes the asset management, maintenance, trail maintenance, all of that, as well as we are in charge of the urban forest, so our forestry department is included in that, and then environmental stewardship.
  • 01:33:20
    is also included in that.
  • 01:33:22
    Recreation Services is our next largest with 26% of the General Fund budget.
  • 01:33:31
    So our General Fund five-year projections, you will see the 5.35% for 2024.
  • 01:33:40
    You're going to see some higher numbers in 25, 26 and 27.
  • 01:33:45
    and that is due to system equity investment that I'll briefly talk about in the next slide.
  • 01:33:52
    You'll see that in 25 and 26 we're showing the one-time gaps as ARPA goes away in 25, but we don't reach the full complement of property taxes until 2027.
  • 01:34:09
    So we are going to be needing to work on some
  • 01:34:14
    other one-time funding sources in 25 and 26 to help close that gap.
  • 01:34:23
    So why system equity investment?
  • 01:34:26
    And what are we doing here?
  • 01:34:29
    So there are a lot of parks that are being added into our system based on the redevelopment of many areas of our system, but also the identified
  • 01:34:44
    gaps in park access in various parts of our city.
  • 01:34:49
    So the three major projects that will be coming online in the next three years are the Greco building in North Minneapolis on the riverfront, Upper Harbor Terminal that you are all very familiar with which includes
  • 01:35:07
    a linear park property along that stretch.
  • 01:35:13
    And then North Commons, which you may or may not be familiar with, but there is an implementation of the master plan at that park that's going to be the largest single investment in a park property.
  • 01:35:31
    So we need to provide current service levels at these locations.
  • 01:35:38
    So as those properties come online, we'll need to add recreation staff, we'll need to add maintenance staff, and those things are built into our projections.
  • 01:35:52
    Our special revenue fund is the next section of the budget book.
  • 01:35:56
    So again, the special revenue fund are accounts for
  • 01:36:01
    revenue from other sources that have grant requirements or donation requirements that are not capital in nature.
  • 01:36:12
    And the item that I want to highlight here is that during this last legislative session
  • 01:36:21
    We received an increase in our state operations and maintenance funding.
  • 01:36:27
    The state of Minnesota is supposed to support our regional parks to the tune of about 40% based on state law.
  • 01:36:38
    They have not
  • 01:36:39
    I have been here 29 years.
  • 01:36:42
    They have not in the history of the park system been able to fund the 40%.
  • 01:36:49
    So it falls in other areas to support a regional system.
  • 01:36:55
    But we are investing $500,000 of ongoing funding from the state operations and maintenance to support multiple methods and strategies
  • 01:37:08
    of Natural Area Restoration and Maintenance.
  • 01:37:12
    So this is the funding source that will be providing the volunteer program aid and then also three seasonal natural resource specialists.
  • 01:37:21
    Also provides contractual and professional services that will be devoted to our regional system.
  • 01:37:31
    Our special revenue fund is also where we will account for the $1.5 million of youth employment and training funding.
  • 01:37:41
    It is coming to us in fiscal year 24 and 25 as two $750,000 allotments.
  • 01:37:49
    It's considered a state direct grant, so we did not have to compete for these funds.
  • 01:37:56
    This is a one-time appropriation.
  • 01:37:59
    and the state has provided us the ability to spend this money through June 30th of 2027.
  • 01:38:08
    So we don't have to spend it all in, you know, in a single year.
  • 01:38:13
    We get to spend it over a period of time.
  • 01:38:16
    And what I will say about this funding, it's going to allow us to hire additional youth but it also is really important because it's going to allow us to hire
  • 01:38:28
    youth for more hours.
  • 01:38:32
    We're going to be able to offer them more pay.
  • 01:38:36
    So it's a combination of a lot of factors that we're going to be able to do because of this funding.
  • 01:38:46
    So in our Enterprise Fund, I love this picture.
  • 01:38:49
    We had the grand opening of the Badei Makaska Pavilion on Friday.
  • 01:38:55
    It was a beautiful day.
  • 01:38:57
    It was a great event.
  • 01:39:00
    And you'll see all the native acknowledgement that is built into this facility.
  • 01:39:06
    So if you haven't been able to stop by there, I highly suggest that you do.
  • 01:39:11
    Also at this location, it's our first year round
  • 01:39:19
    facilities.
  • 01:39:20
    So there's two buildings at that facility and one of those buildings will be open and available to people who are utilizing the parks, that park year round.
  • 01:39:34
    So super exciting.
  • 01:39:36
    Our Enterprise Fund takes care of our business operations and includes parking, use and event permitting, vendors and concessions, the sculpture garden, water works,
  • 01:39:47
    Ice Arenas and Golf.
  • 01:39:49
    And you'll see that parking is the biggest generator of net income.
  • 01:39:58
    You'll see that the sculpture garden and water works were still working through pro formas that will hopefully
  • 01:40:07
    make these places self-supporting.
  • 01:40:10
    So no property taxes are utilized to support these operations.
  • 01:40:16
    And the net income is used to pay debt service, MRF payments and capital improvements in this fund.
  • 01:40:28
    We have a 2024 to 2029 capital improvement program for our
  • 01:40:34
    Enterprise Fund, because again this is a self-sustaining fund.
  • 01:40:39
    So you'll see the projects that are on tap for 2024.
  • 01:40:43
    One of the things I will highlight is we're looking to introduce golf simulators into our system and we are working to do that at Columbia Golf Course.
  • 01:40:56
    So we're kind of excited to see how that turns around and what kind of revenue we can make off of that.
  • 01:41:06
    So then I talked about the Enterprise Fund for our stormwater.
  • 01:41:13
    So as this gets put in place, it's going to help us sustain, protect, and enhance the stormwater management system on parkland for which the NPRB is responsible.
  • 01:41:26
    and it will also cover the annual cost of water quality and stormwater monitoring of Minneapolis water bodies and water quality education.
  • 01:41:39
    So how this is being implemented, Schedule 8 of the Mayor's recommended budget includes a separate line for stormwater allocated to the NPRB.
  • 01:41:53
    The 2023 amount, the point
  • 01:41:56
    of the 26 cents is based on the annual amount that we were receiving for water monitoring and the education.
  • 01:42:07
    And then increasing to 42 cents in 2024 is going to provide us with $501,000 additional revenue for eligible stormwater expenditures.
  • 01:42:22
    So this fund will be managed through our
  • 01:42:26
    Environmental Management Department and it will include an engineer and some part-time provisional staffing and also significant professional services and contractual services so that we can manage our storm water sewer system and our storm water best management practices.
  • 01:42:53
    Our internal service funds, we have three.
  • 01:42:56
    We have our information technology services, self-insurance, and our equipment, mobile equipment.
  • 01:43:06
    So those balances are shown there.
  • 01:43:10
    So now I'm going to turn it over to Assistant Superintendent Schroeder who will provide the capital improvement information.
• • SPEAKER_01
  • 01:43:22
    Chair Koski and committee members, I just have a few slides to go through.
  • 01:43:25
    I'll focus first on the report that you received, the NPP 20, and I'll very summarize the questions for those of you who have seen it before.
• • SPEAKER_00
  • 01:43:36
    The report highlights the requirements of the NPP 20 ordinance, and it provides a background history and projections of the capital and rehabilitation projects we've been working on for the three-year cycle.
• • SPEAKER_01
  • 01:43:52
    So when we look at the years 2021, 22, and 23, you can see the allocations that we made in the rehabilitation program.
  • 01:44:00
    The rehabilitation program is oriented toward meeting park safety, making certain that our assets are conforming to codes, and addressing some of the critical failures that we find in the system every day.
  • 01:44:10
    The overall intention is to make certain that those assets in our park can be maintained and be serviceable until we get to a capital project that will happen in every park.
  • 01:44:22
    So you can see that we've been moving through the dollars allocated in each of the three years.
  • 01:44:27
    The numbers for 2023, I'll point out, are as of December 31st, 2022.
  • 01:44:32
    In the rehabilitation categories, we have some projects that carry over from one year to another because the scope of the project has to be quite large when we are re-roofing buildings or redoing restrooms in buildings to meet ADA requirements, for example.
  • 01:44:48
    The capital portion is when we are reinvesting wholly in new parks.
  • 01:44:54
    Director Arvidson spoke about this a little bit ago when we talked about the MPP20 budget.
  • 01:44:58
    And again, these are numbers that we look at over a three-year period.
  • 01:45:03
    And it's important when we look at these numbers that we're recognizing that it's based, the investment is based on the equity rankings
  • 01:45:10
    that are part of our ordinance and that we allocate those funds so that in the first year we are doing engagement and scoping of the project.
  • 01:45:19
    The second year we're typically doing design and bidding the project and the third year we're actually doing the improvements.
  • 01:45:26
    So for example in 2021 we are just implementing the work that we went through the engagement
  • 01:45:33
    and 2021 this year.
  • 01:45:36
    And so those numbers get much much higher as we move into the subsequent year.
  • 01:45:40
    It takes us three years to go through a capital improvement project in each of the parks.
  • 01:45:46
    This is the overall capital improvement program and I'll just highlight just probably one thing.
  • 01:45:51
    This looks at the dollars that are directed to both neighborhood and regional parks and what's important about 2024 as we look ahead is the numbers are significantly higher because of the success of the legislature in directing additional funds into several of our projects and so you'll see when you get to the bottom, near the bottom line on this chart
  • 01:46:14
    the $33 million of investments, that's significantly higher than we would normally have in our parks because of the work that happened at the legislature last year and directing additional dollars into our regional system.
  • 01:46:28
    And I'll stand for questions with others.
  • 01:46:31
    Oh, Julie.
• • SPEAKER_06
  • 01:46:35
    So I just wanted to, sorry.
  • 01:46:40
    I just wanted to go over the park board's budget process.
  • 01:46:43
    The superintendent presented his recommended budget to our board on October 18th.
  • 01:46:51
    So November is commissioners time to comment on the budget, ask questions, and go through their markup or amendment process.
  • 01:47:01
    So that will occur on November 1st and November 15th.
  • 01:47:06
    and our hope is to have an adopted budget within our Admin and Finance Committee on November 15th.
  • 01:47:15
    That includes any amendments that the commissioners have so that when we come over to City Hall on December 5th and formally adopt our 2024 budget, that part is not
  • 01:47:30
    is not televised for the park board.
  • 01:47:34
    So we'd like to have all of the conversations and things completed by November 15, so that it's included in our public information.
  • 01:47:47
    And now
  • 01:47:47
    We are here to answer any questions.
• • Emily Koski
  • 01:47:49
    Thank you.
  • 01:47:50
    I have Councilmember Wansley in queue for a question or comment.
• • Robin Wonsley
  • 01:47:55
    Yeah.
  • 01:47:55
    Thank you, Cherikoski.
  • 01:47:57
    I also have an opportunity to look at the other recommended budget from the superintendent to see some of the programmatic aspects and was really excited to see you all exploring a study for the ice arena.
  • 01:48:11
    I know that's been a big project that community members have been championing for a number of years.
  • 01:48:15
    I'm also excited to see the continuation of youth-free programming.
  • 01:48:19
    I know that was a major win for community members who want to engage in our park system and have found those fees to be a barrier.
  • 01:48:30
    So really excited to see continuation on that.
  • 01:48:32
    I did also see that there was a note that general dollars is not sufficient, but you're
  • 01:48:40
    and the
  • 01:49:00
    Really excited to see a continuation of that.
  • 01:49:03
    I did have a question regarding the tree canopy because I know that's a big priority of this body and wanted to see kind of like status of the carbon off credit program.
  • 01:49:16
    I know that was included in the presentation and wanted to know if there's like any results on that, how that's supporting some of the public subsidies that's been coming in.
  • 01:49:28
    for expanding our tree canopies across the city.
• • SPEAKER_06
  • 01:49:32
    Chair Koski and Councilmember Wonsley, that is really still in its very infancy, so we have started to receive some funding through the sale of those carbon offsets, but it's over a 25-year period of time, so those dollars will need to continue to be built up
  • 01:49:57
    before there's sufficient funding to expand our tree planting.
• • Robin Wonsley
  • 01:50:05
    Okay, and follow-up question on that.
  • 01:50:07
    So is there basically an existing 25-year contract with, I believe it's a nonprofit that you all are partnering Green Minneapolis or something like that.
  • 01:50:18
    So is there a 25-year contract then with them to kind of like yield these results over 25 years?
• • 01:50:25
    Right.
• • SPEAKER_06
  • 01:50:26
    Chair Koski and Councilmember Wonsley, I don't know the exact terms of the Green Minneapolis contract.
  • 01:50:35
    I don't think it's for the whole 25 years, but it would have to be renewed over time.
• • Robin Wonsley
  • 01:50:42
    Okay, is there any way we could find that just publicly of like, what's the terms of that contract if it because I would hope
  • 01:50:51
    You all want to be locked into something for 25 years.
  • 01:50:54
    But is there any way to kind of find more information about that?
• • SPEAKER_06
  • 01:50:59
    Yes, so as the City Council has, the Park Board has a public website where you can search for resolutions that were adopted and contracts that were created.
  • 01:51:15
    in the attachments to those will include a copy of that, the terms and conditions of that.
  • 01:51:22
    I'm just not as familiar with that as and then we can also send you an email letting you know.
• • Robin Wonsley
  • 01:51:29
    Yeah, that would be great.
  • 01:51:31
    I don't know.
• • Emily Koski
  • 01:51:33
    I see you have a friend come in.
• • SPEAKER_03
  • 01:51:37
    I'm not sure if I understand totally your question but the real basis I believe this is the way at least I read it of the offset program is really about longevity and so we are paid for those trees that are planted
  • 01:51:54
    after five years, after 10 years, but the ultimate thing is after 25 years.
  • 01:51:58
    So, you know, if we plant, you know, a thousand trees and 500 of them survive 25 years from now, then we are reimbursed for that longevity.
  • 01:52:08
    So that's the really exciting, to me, the really exciting purpose of the project and everything is about longevity, because that's when you capture the majority of your carbon is the longer that the tree, the more mature the tree is.
• • Robin Wonsley
  • 01:52:21
    And I know, I don't know if everyone is familiar with it but can you kind of recap because from my understanding it's also somewhat like a, you can buy basically into these or buy these credits to as external individual but just wanted to get an overview of like what the program is, the gist of it.
  • 01:52:38
    It's good to know the longevity yields but kind of like what's the premise of it right now.
• • SPEAKER_03
  • 01:52:43
    Well, the exciting thing is that Green Minneapolis actually has been approaching only local investors and those investors who are buying the offset credits have already proven that they are doing
  • 01:53:02
    ways to offset their carbon footprint.
  • 01:53:06
    So to me, that's a really exciting thing.
  • 01:53:08
    So it's not like you're investing in something unknown down in South America, the Amazon.
  • 01:53:14
    This is localized and it's localized investors.
  • 01:53:17
    So it's really exciting.
• • Robin Wonsley
  • 01:53:19
    So on the website, is there kind of a layout of ratio too?
  • 01:53:25
    From my understanding, there's public dollars that's also going into supporting this that might be matched with the investors.
  • 01:53:32
    Is that not the case?
  • 01:53:33
    Or is it solely investors?
  • 01:53:35
    Solely investors.
  • 01:53:36
    And then the park board then receives the yields on those investments.
  • 01:53:41
    But of course, kind of like a typical market over a period of time.
• • SPEAKER_03
  • 01:53:46
    Yeah, in some ways, you got over my pay grid.
  • 01:53:50
    Okay, we'll send you links.
  • 01:53:52
    How's that?
  • 01:53:52
    Sounds great.
• • Emily Koski
  • 01:53:53
    Thank you.
  • 01:53:55
    Alright, thank you.
  • 01:53:56
    Councilmember Vita.
• • Katie Cashman
  • 01:53:58
    Thank You chair Koski, I just wanted to quickly say thanks to the park board for being here, of course They're my family.
  • 01:54:06
    It's it's good to see all of you.
  • 01:54:09
    Thanks for the presentation Also wanted to say it's been great working with you all on the parkways the funding for the parkways the long-term funding it was really a frustration for me as a parks commissioner who lives on the parkway and
  • 01:54:23
    Theo Worth Parkway was awful and people used to stick notes on my door and tell me how awful it was and how Theo Worth would actually be ashamed of me for living there with such a terrible parkway.
  • 01:54:35
    So I think looking at this solution long term is long overdue.
  • 01:54:40
    So thank you all so much for the work you've put into us making sure that all of our parkways are sufficient.
  • 01:54:46
    I know I get a lot of complaints about St. Anthony Parkway.
  • 01:54:50
    and the work that needs to be done over there.
  • 01:54:52
    So, you know, I hope that when we finalize this, that that is a priority for sure.
  • 01:54:58
    Also, the youth programming, thanks for continuing the work, President Forney, on making sure that young people have access to the programs at the Park Board.
  • 01:55:07
    And I know the superintendent has always had a really big vision, some things that I couldn't even
  • 01:55:14
    get behind, but thanks for the vision of getting these young people active.
  • 01:55:20
    You know, I'm looking forward to see what happens with North Commons.
  • 01:55:24
    That's a huge project.
  • 01:55:26
    I think the North Side deserves the best North Commons possible.
  • 01:55:30
    I'm here for you all as long as I'm able to make sure we see that project through and finalize it and that the community get what they want.
  • 01:55:39
    for North Commons and not us putting off on them what we think North Commons should be.
  • 01:55:44
    And I know that comes with a lot of money, maybe multiple phases, but I think it's a project that we can do.
  • 01:55:50
    I think we can see it to its end, whatever that's going to be, and it's going to take us a long time to get there.
  • 01:55:56
    But I'm excited about the possibilities for North Commons and also the Upper Harbor Terminal.
  • 01:56:01
    So thank you all for the continued work.
  • 01:56:04
    My office is here to support in whichever way we can to make those parks
  • 01:56:09
    Well, the Upper Harbor Terminal is just dirt right now.
  • 01:56:13
    So to clean it up and have a park and have trails that connects the north side to the river, that is really exciting for the entire community.
  • 01:56:24
    So I'm looking forward to seeing that work through.
  • 01:56:26
    Thank you all so much for the continued work and the commitment to our young people and our seniors in Minneapolis.
• • Emily Koski
  • 01:56:36
    All right.
  • 01:56:37
    I'm not seeing any further comments or questions.
  • 01:56:41
    So I appreciate the park board for being here and all of your president is here and other staff.
  • 01:56:49
    So thank you so much for being here today.
  • 01:56:51
    And next, we have the assessing budget overview.
  • 01:56:56
    Thank you so much for your patience here, director, and I appreciate you
  • 01:57:03
    This is our last budget presentation for the season here, so welcome.
• • Rebecca Malmquist
  • 01:57:11
    Good morning Chair Koski and committee members.
  • 01:57:15
    My name is Rebecca Malmquist and I have the honor of serving as the city assessor and I'm here to present the mayor's recommended budget for 2024.
  • 01:57:24
    And like you said, just like last year, I'm the closing act for the department budget presentations, and you've all listened to many hours of presentations.
  • 01:57:32
    So I hope that you'll welcome our brief presentation.
  • 01:57:35
    Before I get started, I want to mention that I am joined by a few members of our leadership team.
  • 01:57:39
    I'm very, very fortunate to have these amazing
  • 01:57:42
    talented and highly respected individuals on our team.
  • 01:57:46
    Today we have Nancy Wojcik, he or she is the Director of Assessments.
  • 01:57:50
    We have Brian Kieser, our Chief Appraiser and we have Troy Halter, one of our Appraisal Supervisors.
  • 01:57:57
    Just making sure that's everybody.
  • 01:57:59
    But really thank you to all of our team.
  • 01:58:00
    We continue to have our challenges indeed, but we are united.
  • 01:58:04
    and we continue to do the right thing at the right time for the right reason.
  • 01:58:08
    Our team provides exceptional customer service and is committed to a fair and equitable valuation that has to really withstand really, really great scrutiny.
  • 01:58:18
    They're the best team in the state and you should be very proud.
  • 01:58:21
    In addition to our team, I also have to thank the budget team.
  • 01:58:25
    We've been working much more collaboratively together
  • 01:58:28
    and we work to provide more data, deeper analysis and transparency in the budgeting process, so a huge thanks to them.
  • 01:58:37
    This is our current organizational chart.
  • 01:58:40
    Our team is small yet mighty.
  • 01:58:41
    Our department is organized by the type of property being assessed, such as residential, commercial, apartment.
  • 01:58:49
    We have our residential team of 14, the apartment team of three, the neighborhood commercial team of three.
  • 01:58:56
    We have the central business district team of five, our technician team of four, and our internal IT analysis team of three.
  • 01:59:07
    The primary objectives for our department are to first meet Minnesota State statutory requirements and the valuation and classification of properties, all properties valued as of January 2nd of each year.
  • 01:59:19
    Also then, property tax programs are administered in an accurate, ethical, equitable, and defensible manner, as prescribed by law, and also preserve the equity and fairness in the distribution of the very large tax burden.
  • 01:59:34
    and then finally to educate our property owners, taxpayers and the decision makers in our general practices and policies in our office.
  • 01:59:43
    On to what we consider to be some of the achievements of the last year and what we view as some of the risks.
  • 01:59:49
    Starting with our achievements, we completed the hiring and onboarding of many new staff across the department.
  • 01:59:56
    I believe that there have been two more since this was compiled for the mayor's review.
  • 02:00:01
    So more than one third of our department has been hired or promoted.
  • 02:00:04
    And I'll speak to the vacancies in just a few moments.
  • 02:00:08
    Oops, let me stay up there.
  • 02:00:09
    So we have gone above and beyond what is required by statute and the Department of Revenue in terms of analyzing our assessment through the lens of equity.
  • 02:00:19
    Leveraging recent census data, our team conducted a spatial analysis to determine if we could see patterns or areas of inequity beyond the neighborhood and community analysis we would typically already conduct.
  • 02:00:33
    The data was analyzed going back in history and comparing forward in time.
  • 02:00:39
    We are proud to report that our assessments continue to get better and better and there is no clear pattern of inequity.
  • 02:00:45
    Two of our team members presented on this work at the 2023 International Association of Assessing Officers annual conference.
  • 02:00:54
    in a session titled Mapping in Equity using ArcGIS for oversight and fairness.
  • 02:01:01
    They received accolades for their work, but were also able to show colleagues and generate conversations with colleagues from around the globe.
  • 02:01:11
    and I do expect them to be tapped into for future presentations because of that work.
  • 02:01:16
    In terms of the 2023 appeal season, we were completely back in person and went through some process improvements and restructuring as the clerk's team is no longer actively participating in our hearings.
  • 02:01:29
    While we had many applicants to work through and the line was quite long on the first floor where we conducted the hearings, we still consider the work to be a success.
  • 02:01:38
    So this is my one moment to pitch to you the importance of having a knowledgeable and diverse panel for our local board members.
  • 02:01:45
    So any assistance that you can provide to help recruit members would be very much appreciated.
  • 02:01:50
    And then our camera system conversion.
  • 02:01:54
    We had hoped to go live in September.
  • 02:01:56
    However, due to some people resource issues, it has been delayed to spring, but we are quite confident, as is IT and our software provider, that we will meet this revised schedule.
  • 02:02:08
    So that is scheduled for February.
  • 02:02:10
    I said that's spring, but really here that's not spring.
  • 02:02:14
    And then finally, we have moved into City Hall and we've adapted to our hybrid schedule.
  • 02:02:19
    It's very lovely.
  • 02:02:21
    It's an understatement to have a permanent home and a space.
  • 02:02:24
    We had a hand in both designing and are now selecting art for and making it our own and making it a welcoming space for our customers that is accessible.
  • 02:02:38
    So to the risks, first, appeals and tax court petitions are historically high retention rate of market value under appeal is no longer sustainable.
  • 02:02:48
    And I'll do a bit of a deeper dive in a moment.
  • 02:02:51
    The second equally concerning is our people, attracting and retaining them.
  • 02:02:56
    And I know you've heard this from each and
  • 02:02:58
    every department as I've been watching to hear the key messages from them.
  • 02:03:03
    The Minneapolis real estate market and property valuation is the most challenging in the state and is more challenging than almost every other city in the Midwest, yet we do not recognize this when it comes to compensation.
  • 02:03:17
    Our staff can move one suburb or county away and it equates to less work at a higher pay.
  • 02:03:26
    You recently heard CHRO Nikki Oda mention a few times in her presentation that they have one person to do all of this compensation work.
  • 02:03:34
    One.
  • 02:03:36
    Our team has been harmed by the current system.
  • 02:03:38
    We initiated a compensation study over one year ago.
  • 02:03:41
    It began with a conversation about the budget with the mayor in mid-2022 because he asked me why we weren't again asking for appraisers to assist in the downtown team due to growing litigation.
  • 02:03:55
    I was honest in telling him that we cannot get qualified interested candidates because who wants to work on downtown litigation at a fraction of what a commercial appraiser can attain in surrounding jurisdictions.
  • 02:04:08
    And so I've had to witness some of our top talent leave.
  • 02:04:11
    We thought we would have the results of the compensation study this week, but I just heard that a request came in that was a higher priority.
  • 02:04:17
    And due to the staffing issues and capacity in HR, we have to wait a little bit longer.
  • 02:04:23
    and these delays I can tell you are having devastating effects on the staff morale.
  • 02:04:29
    The current compensation system is from our perspective not meeting the needs of its customers.
  • 02:04:35
    The theories seem flawed and we have to do better.
  • 02:04:38
    So those critical positions in HR that they requested really do need funding.
  • 02:04:43
    Back to tax court litigation.
  • 02:04:45
    Stepping back and looking at tax court petition history, this chart represents the total market value under appeal each payable year.
  • 02:04:54
    To help orient you to what you're seeing on the table, the orange portion of each year represents value that has been maintained.
  • 02:05:02
    These settlements or litigation are complete and we retained that portion of the value.
  • 02:05:09
    So we want to see a lot of orange on this chart.
  • 02:05:11
    That's what I'm pointing out here.
  • 02:05:13
    The green represents value that has been lost in settlements or litigation and so green is not good.
  • 02:05:20
    The blue represents value that is still open and has an open appeal or something that's going through the litigation process.
  • 02:05:27
    If we look at the first bar on the left,
  • 02:05:30
    In Payable 2014, we had just over $1 billion in value being appealed, and we retained 96.1% of that value.
  • 02:05:39
    Fast forward, moving to the last bar on the right, in 2023, we have almost $9.5 billion under appeal, and this is an increase of
  • 02:05:50
    almost 20% over last year and that is representing 15% of the total market value of $64.3 billion and that's a large percentage.
  • 02:06:03
    The percentage at the top of each bar represents the percentage of the market value that was retained.
  • 02:06:08
    And so you'll see on our right that our internal goal is to retain 95% and that is slipping.
  • 02:06:14
    We simply do not have the resources to litigate these as we should.
  • 02:06:18
    This is not something that's easy to say in this forum, because the appellants can use this to their advantage.
  • 02:06:24
    However, you need to know that this is our reality.
  • 02:06:30
    A few other takeaways, if we looked at the breakdown of that $9.4 billion in market value, 58% of that is commercial, 40% is apartment, and the remaining 1% or 2% is residential value.
  • 02:06:43
    However, if we just focus on the commercial value, because it has the highest tax rate, 45% of the total commercial tax base is under a petition.
  • 02:06:54
    And as of the date this data was pulled, we still had 639 remaining open cases going back as far as 2018.
  • 02:07:02
    Also, if we just look at those top 10 petitioners alone, the value for those top 10 is up to 2 billion dollars.
  • 02:07:12
    So 20% of the value under petition comes from just our top 10 petitioners.
  • 02:07:19
    Program and Staffing, we only have one program area, titled Appraisals and Assessment Administration.
  • 02:07:24
    This single program is responsible for ensuring a fair distribution of the property tax burden and generates more than $472 million in city property taxes that fund the general fund, providing the largest single source of revenue and the most flexible source of revenue.
  • 02:07:44
    Then for our vacancies, we currently have two.
  • 02:07:47
    One is being held open until this compensation study that I mentioned is complete and the other is open to some extended HR personnel issues.
  • 02:07:57
    Both will be posted as soon as these outstanding issues are resolved.
  • 02:08:03
    The total 2024 Mayor recommended budget for assessing is $6.7 million.
  • 02:08:09
    We have no new budget proposals for you this year or changes in service delivery planned, but our budget still appears to decrease and that's due to the inclusion of rollover dollars from 2023 and a planned decrease in that CAMMA budget proposal funding between 2023 and 2024.
  • 02:08:29
    So the mission of our department is focused on accurate, fair, and equitable valuation classification, as well as maintaining accurate property records that are leveraged by every department in the city.
  • 02:08:40
    We have three primary goals that contain several objectives and metrics.
  • 02:08:45
    I'll touch on them briefly on the next slides.
  • 02:08:48
    What I would want to call attention to though is our values, because our values guide how we do our work, and they need to be reflected in all the decisions we make, and they are being dedicated to meeting customer needs,
  • 02:08:59
    and exceeding their expectations.
  • 02:09:02
    We're committed to accuracy.
  • 02:09:04
    We're accountable for our actions and decisions.
  • 02:09:07
    We're transparent and honest, always adhering to policies and procedures.
  • 02:09:11
    And we are a team of qualified, talented, engaged and motivated professionals.
  • 02:09:18
    On to our goals, equity work and outcomes.
  • 02:09:21
    Our first goal is accurately and equitably evaluating and classifying properties to fairly distribute the tax burden.
  • 02:09:28
    And some of the metrics and data we use to evaluate this work, including statistical measurements we employ that we report on to you every year, our quintile reassessment requirements to make sure that we are keeping up with our inspections, the tax court petition counts and outcomes, market value retention,
  • 02:09:47
    Appeal Counts and their outcomes.
  • 02:09:51
    The second goal is the assessment practices should be clear, evident and accessible to all of our stakeholders to enhance engagement and increase transparency.
  • 02:10:01
    And the metrics and data we use here include response time to inquiries and requests, customer surveys and event surveys.
  • 02:10:10
    Both of these new surveys are new and we're rolling them out in the next year and we're looking forward to collecting that data.
  • 02:10:18
    Our third goal is that the Assessor's Office staff are ethical, educated, professional, and high performing to ensure exceptional assessment outcomes.
  • 02:10:28
    And the metrics we use here include the number of staff that obtain and maintain advanced levels of licensure, staff demographics to ensure that our team reflects the community we serve, employee turnover rate,
  • 02:10:43
    and then our participation in career events and the measurement of the success of those events.
  • 02:10:51
    So in closing, just another shout out to our team, their commitment to excellence and all the support that they provide to me during some very challenging times.
  • 02:11:01
    Cannot go without yet another thank you.
  • 02:11:03
    So Chair Koski and committee members, that concludes my report and I'm here for questions.
  • 02:11:08
    Thank you.
• • Emily Koski
  • 02:11:10
    Thank you, Director Mumcrest.
  • 02:11:11
    I appreciate your presentation and for being willing to be the last to close on these presentations as well.
  • 02:11:19
    I see we have a question from Councilmember Payne.
• • Elliott Payne
  • 02:11:22
    Thank you, Madam Chair.
  • 02:11:23
    Yeah, it's a standout to me that there's only 10 properties or 10 petitions that add up to such a huge amount.
  • 02:11:31
    Do you have any?
  • 02:11:32
    Well, and I'll also preface this question with the reality that we have a lot of commercial real estate that's going to have some balloon payments coming due.
  • 02:11:39
    Do we have a grasp on when those debts are going to come due and what that impact might be on assessment?
  • 02:11:50
    Especially with looking at it, you can track 10 properties, right?
  • 02:11:53
    In my mind, I would think this would be really hard to keep track of how many properties are going to come due, but when the top 10 are adding up to $2 billion, it seems like I'd just be curious to know if we have a grasp on that.
• • Rebecca Malmquist
  • 02:12:07
    Chair Koski and Council Member Payne, good question, thank you.
  • 02:12:12
    I would say that the list is pretty interesting in terms of when we look at our top 10.
  • 02:12:18
    We had a new petitioner added and that's our top petitioner and their value is over 270 million dollars.
  • 02:12:25
    So that and then the next nine below it do total 2.2 billion dollars.
  • 02:12:30
    As far as the information and data that we have about when those mortgage payments are coming due,
  • 02:12:36
    and when lease terms are coming due, maybe tenants are looking at moving out.
  • 02:12:41
    That is data that we try to collect as best we can, both during our annual assessment process, we do a lot of surveys of our property owners, and then we collect a lot of data through the tax court petition, they're required to supply information.
  • 02:12:56
    and then we do try to leverage as many outside sources as possible so that we have that information.
  • 02:13:01
    They're very expensive sources so we have at least one primary source but there are others that we would consider leveraging if we had the funding for them but yes we collected as best we know and we have many spreadsheets that track the health of all of our properties downtown.
• • Elliott Payne
  • 02:13:19
    And do you have any
  • 02:13:21
    I don't know.
  • 02:13:22
    Guess forecast assumption about what those mortgage mortgage payments like what impact that's going to have on the commercial property values.
• • Rebecca Malmquist
  • 02:13:34
    Chair Koski and committee member pain.
  • 02:13:35
    I don't have a canned answer for that.
  • 02:13:37
    I apologize I can.
  • 02:13:39
    We can talk to our team and see if there's something we could get back to you on.
• • Elliott Payne
  • 02:13:42
    OK, sounds good.
• • Emily Koski
  • 02:13:45
    Thank you.
  • 02:13:46
    That would be great to have a follow-up on that.
  • 02:13:47
    I think there was a lot of new information, a lot of heavy information to digest.
  • 02:13:55
    I know for myself it might take me a few moments to let this all sink in as well.
  • 02:14:00
    So I appreciate the presentation.
  • 02:14:03
    and with that we've concluded our presentations for today, so I will direct the clerk to file those presentations at this as this is our final scheduled presentation on the 2024 city budget.
  • 02:14:15
    I'll busy walk through our next steps tomorrow night at 605.
  • 02:14:19
    The City Council meets to conduct the first of three public hearings on the mayor's proposed proposed budget.
  • 02:14:25
    The second public hearing will be held next week on Wednesday, November 1st at 10 AM at a meeting of the Budget
  • 02:14:31
    After we complete that hearing, a budget markup session is scheduled for Thursday, November 30th at 10 a.m.
  • 02:14:37
    If we don't complete our work that day, we will continue our markup of the budget on Friday, December 1st at 10 a.m.
  • 02:14:43
    When this committee is completed with its markup, we will send our final recommendation to the full council for a final public hearing and adoption on Tuesday, December 5th at 605 p.m. Are there any questions on the budget process that I've laid out?
  • 02:14:57
    Not seeing any.
  • 02:14:59
    So with that, we've concluded all business to come before the committee today.
  • 02:15:02
    Without objection, we stand adjourned.
  • 02:15:03
    Thank you.