2023 Mayor’s Budget &

Salary Plan Preview

City of Grand Forks, ND

2023 Mayor’s Budget
June 20th, 2022
 AGENDA
2022 Budget Progress
1st Quarter Budget Performance Report
Revenue Comparisons

2023 Preliminary Budget Preview

Key Revenue Projections
Growth Indicators
2023 Salary Plan & Benefit Update

Upcoming 2023 Budget Timeline

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 BUDGET PERFORMANCE REPORT
Q1-2022 (25%)
General Fund Revenues
Real Estate Tax – 98% of Budget
Sales Tax - 28% of Budget
Up 12.67% Year-Over-Year (As of June)
Up 14.26% on 12-Month Rolling Average (As of June)
State Aid – 27% of Budget
Building Permits – 16% of Budget
Franchise Fees – 40% of Budget
General Fund Expenses
23% of Budget Overall
Gas/Diesel – 36% of Budget
Utilities – 33% of Budget

Handout A 3
2020-2022 REVENUE COMPARISON

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2020-2022 REVENUE COMPARISON
Sales Tax Collections | First 5 Months
$14,000,000

$12,000,000
$11,251,882.00 $11,649,859.00
$10,980,142.00
$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0
2020 2021 2022

5
 2023 Mayor’s Budget
Preview

City of Grand Forks, ND

2023 Mayor’s Budget
June 20th, 2022
2023 PRELIMINARY BUDGET PROJECTIONS
Sales & Use Tax Projections
Budgeting 2023 Equal to 2021 Actuals | 13.5% Increase
General Fund: $6.0M | Economic Development: $2.2M
Street/Infrastructure: $3.5M | Street/Water: $6.4M
Alerus Center: $10M | Use Tax: $1.0M

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2023 PRELIMINARY BUDGET PROJECTIONS
State Aid
Budgeting 2023 Equal to 2021 Actuals
$3.5M Budgeted | 8.2% Increase
*Still Awaiting State Guidance*

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2023 PRELIMINARY BUDGET PROJECTIONS
Highway Users Tax
Budgeting 2023 Equal to 2021 Actuals
$2.9M Budgeted | 5.4% Decrease

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2023 PRELIMINARY BUDGET PROJECTIONS
Prairie Dog Infrastructure Funding
Expected to Receive $12M Each Biennium
Next Distribution to Arrive Q1 2023
Received $2.5M in 2020
Fully Allocated to Street/Infrastructure Fund

Future Use Planned for Street & Water Infrastructure

Percentage Split TBD

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2023 PRELIMINARY BUDGET PROJECTIONS

Franchise Fees Building Permits

Cable: $685K | 3.5% Decrease $962K Budgeted for 2023

(Equal to 2022 Budget)
Xcel: $1.4M | 17% Increase
(~70% Electric | ~30 % Gas)
Using 5-Year Averages for
Nodak: $800K | 23% Increase Most Permits and Licenses
*Includes Core Scientific
& Other Data Centers

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2023 PRELIMINARY BUDGET PROJECTIONS
Mill Levy
2023 Mill Value: $254,645 (Estimated)
2022 Mill Value: $243,634 (Actual)

4.69% Increase in Value of Mill

1.72% Growth | 2.97% Revaluation

2022 Mill Levy: 97.02

2022 Mill Levy: 97.02 (Proposed)

Handout B 12
2023 PRELIMINARY BUDGET PROJECTIONS
General Fund Expense
$45.8M Estimated for 2023
6.19% Increase Compared to 2022 | May CPI 9%
Includes Fully Funding Salary Plan and Capital Reserve

Handout C 13
 2023 Mayor’s Budget
Salary & Benefit Update

City of Grand Forks, ND

2023 Mayor’s Budget
June 20th, 2022
 SALARY PLAN - KEY UPDATES
Increased Focus on Attraction & Retention Efforts.
Career Paths
Certification Increases
Increased Starting Wages & Benefits

Removal of Duluth, MN
Due to Unsettled Union Contracts.

Partial data used from Rapid City, SD

Implemented New Salary Plan with Large Salary Ranges
Resulting in Skewed Data.
 SURVEY CITIES

Bismarck, ND Rochester, MN
Fargo, ND Moorhead, MN
Minot, ND St. Cloud, MN
Rapid City, SD* West Fargo, ND
Sioux Falls, SD Burnsville, MN
Duluth, MN* Blaine, MN
*Duluth, MN - removed due to unsettled contracts from 2020
*Rapid City, SD – Partial data used due to new salary plan with large ranges,
resulting in skewed data.
 Council Approved Yearly Percentage
Including Mayor Proposed 2023 Percentage Increase
4.50%
4.13%
3.94%
4.00%
3.72%
3.44%
3.50%
3.06% 3.08% 3.10%
3.00%
2.58%
2.50%
2.22%

2.00%
1.58%
1.50%

1.00%

0.50%

0.00%
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
$1,254,450 $825,232 $447,500* $681,172 $547,236 $453,407 $679,545 $778,865 $694,956 $521,549
12.00%
Survey Cities Reported Increase for 2023
10.14%
10.00%

8.00%

6.00%

4.07%
4.07% 4.15% 4.13%
4.00% 3.81%
3.56%
3.39% 3.05%
3.05% 3.05% 3.05%

2.00%

0.00%
2023 MAYOR’S PRELIMINARY SALARY PLAN

$1,254,450 - Budgeted (4.13%)

$1,218,664 - Market Adjustments (97%)

$35,786 - Merit (PFP) (3%)

Employee Average Increase (for employees receiving market increases)

$1.41 Market– FY 2023
 2023 General Fund Breakdown $1,254,450
PFP Adjustment
$35,786
3%
Below 80%
$306,500
24%

Market Adjustment
$911,664
73% *Minimum Salary
Increase - $500
Below 80% Market Adjustment PFP Adjustment
2023 All Fund Breakdown - $1,753,753
 10 Year Review – Market and Merit Breakout
$1,400,000

$1,200,000

$1,000,000
Market Funds

$800,000
Performance Funds

$600,000 Minimum Salary Increase

Flat Increase ($1,000)/

$400,000 Public Safety Plan*
*Pandemic Year

$200,000

$-
$1,254,450

$825,232

$447,500

$681,172

$547,236

$390,251

$679,545

$778,865

$694,956

$521,549
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
 Civil Service Positions and Promotions
General Fund Priorities

1 - Promotions 2 – New Positions

• Civil Engineer Specialist • 6 Police Officers – COPS Grant
(25% - Year 1)
• Civil Engineer, Senior
• 2 911 Dispatcher Trainees
• Electrician
(City Share – 58.1%)
• Manager position - Finance
• Civil Engineering Specialist –
• Assistant Human Resource Director Stormwater
• Administrative Specialist, Senior (2)
• Senior Accountant
• IT Analyst (3)
• Deputy Building Official
• Assistant City Engineer
 Civil Service Positions and Promotions
Other Fund Priorities

1 - Promotions
• Wastewater Treatment Plant Supervisor
• Water Treatment Plant Supervisor
• Water Distribution Supervisor
• Collections Heavy Equipment Operator (4)
• Central Garage – Fleet Maintenance Mechanic, Senior (2)
• Public Transit - Fleet Maintenance Mechanic, Lead
• Building and Grounds Supervisor
• Supervisor – Sanitation Collections
 BENEFITS
NDPERS Pension Plan
Prior to 1/2020
7% Employee Contribution
8.26% Employer Contribution (7.12% Pension, 1.14% RHIC)
After 1/1/2020
7% Employee Contribution
8.26% Employer Contribution (Removed RHIC Benefit)
Public Safety Plan (Implemented in 2021)
5.5% Employee Contribution
10.95% Employer Contribution (9.81% pension, 1.14% RHIC)
Health Insurance
Blue Cross Blue Shield of ND
25% Employee/ 75% Employer Contribution
Brown and Brown Insurance Consultant
Budgeted 7% Increase
Potential PFP Funding if Savings Realized

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 BUDGET TIMELINE
July 13th, 2022
Joint Meeting with City Council & Alerus Commission
Noon at the Alerus Center
July 18th, 2022
Presentation of 2023 Mayor’s Budget
All Funds | CIP | Fee Listing | Utility Rates
Week of July 25th
GF/EGF Wastewater Interconnect Advisory Committee (TBD)
August 1st, 2022
Preliminary Approval of 2023 Budget
September 19th, 2022
Final Approval of 2023 Budget

Handout D 26