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Page 3 of 4 2021 PMP – Hazelnut Neighborhood PIR/Utilities $3,632,000 Karth Lake Runoff Control Surface Water/Grant $180,000 Replace Int’l Plow Truck #120 Equip/Bldg Replacement $243,960 Replace 2012 F-350 Truck #203 Equip/Bldg Replacement $48,000 Replace 2010 F-350 Truck #210 Equip/Bldg Replacement $46,000 Replace 1997 Toro Groundmaster #409 Equip/Bldg Replacement $60,000 Trade in Program Toro Z Mowers #458 & #459 Equip/Bldg Replacement $30,000 Portable Message Board Equip/Bldg Replacement $16,000 Portable Light Tower Equip/Bldg Replacement $10,000 As of the writing of this report, it has been realized that a few projects that are currently listed as 2020 projects will actually be completed in 2021. The final 2021-2025 CIP will include these projects in 2021. This does not alter the ending 2021 cash balance for any of the funds. Enterprise Funds The City has four enterprise funds that finance business-type activities. A rate study was completed in 2018 for the Water, Sewer and Surface Water Management funds. The recommended rate increases are reflected in the revenue budgets and will be included on the 2021 Fee Schedule for the City. The proposed increases are as follows: Water – 3%; Sewer – 6.5%; Storm – 3%. Below is a comparison of utility fees for 2020 and 2021 based on proposed rates and for a household using 9,000 gallons per quarter with a ¾” meter size or smaller. Revenues for water and sewer are down in 2020 because of COVID-19. The biggest impact was realized during 2nd quarter billings. It appears usage came back to more ‘normal’ levels for 3rd quarter. An analysis shows that water revenue may come in about $30,000 under budget and sewer revenue may come in about $150,000 under budget. The difference in revenue loss between the two funds is most likely due to the fact that businesses continued to irrigate but the usage in the buildings dropped dramatically. The Sewer Fund had been working on building up a cash balance, but the hit it took from COVID-19 was quite a setback. Staff is looking at recommending a 50% decrease to the amount of the transfer from the Sewer Fund to the Equipment and Building Replacement Fund in 2020 ($63,000) to mitigate the deficit in the Sewer Fund. Staff has plans to create a long term Vehicle and Equipment Management Plan as there is currently no data supporting the transfers being made from the Utility Funds to the Equipment and Building Replacement Fund. If this transfer reduction causes a deficit balance in the Equipment and Building Replacement Fund, it could be made up in future years once the asset management plan is created, or the City could use savings from the 2020 General Fund mainly due to the furloughed employee to make up the difference. Property Values, Taxes and Tax Rates According to information provided by Ramsey County, the median home value in Arden Hills will increase from $372,400 for 2020 taxes to $387,500 for 2021 taxes, an increase of 4.05%, which is less than the countywide average of 4.9%. The annual impact of a 4.25% City levy increase to a residential homes is as follows (City tax amount only): 2020 2021 Water 73.74 75.89 Sewer 109.27 116.38 Storm 15.61 16.08 TOTAL 198.62 208.35