BUDGET Adopted Annual - CITY OF NEW RICHMOND - City of New Richmond WI

CITY OF NEW RICHMOND
         Adopted Annual

        BUDGET
          Fiscal Year 2022

 Efficient | Inclusive | Transparent

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INTRODUCTION
The 2022 budget reflects the City’s mission to provide residents with reliable, efficient and
economic public services. Priorities for this budget year are focused on financial sustainability,
operational flexibility, and preservation of fund reserves:

    Ensure adequate resources are available to provide core services to community.

    Increase public safety resources with the addition of two patrol officers.

    Allocate resources to fund Medical Reserve Account liability.

    Continue investments in City infrastructure that catalyze growth and development.

    Seek opportunities for cost shift/share of services when possible.

    Align levy growth with net new construction growth as closely as possible.

The primary focus of this document is the General Fund. A fund is a self‐contained set of accounts
used to budget, track, and report the financial position of the City. Activities such as Police, Streets,
Library, Parks, and Community Development are accounted for and tracked in the General Fund. This
fund is also referred to as the Operating Budget in public notices and budget documents because it
supports ongoing activities and continuing operations.

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ADOPTED LEVY OVERVIEW
The 2022 adopted budget includes a combined property tax levy of $6,276,595. This amount is a
$230,490 or 3.8% increase when compared to prior year.

The levy provides funding for general operations, annual debt obligiations, replacement of capital
assets, and tax increment districts.

                                    Adopted Levy Comparison

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POPULATION & VALUATION

City of New Richmond Population
Shovel‐ready residential and commercial
parcels, amenities, and proximity to the
Twin Cities have all contributed to steady
growth; New Richmond’s population
increased 20% or 1,700 from 2010 to
2021.

City of New Richmond Valuation
The City’s equalized value, or the total estimated worth of all real property, increased 5.7% between
2020 and 2021, a tax base increase of $55,778,100 and the ninth consecutive year that the City’s
equalized value has increased. The current total equalized value of New Richmond stands at
$1,034,064,100, which is $435.9 million more than the City’s pre‐recession peak. Over the last four
years, equalized value has increased between 5.7 and 14.4 percent annually.

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GENERAL FUND
The City’s largest governmental fund is called the General Fund. Activities such as Police, Streets,
Library, Parks, and Community Development are accounted for and tracked in the General Fund. This
fund is also referred to as the Operating Budget in public notices and budget documents because it
supports ongoing activities and continuing operations.

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General Fund Revenues
The 2022 adopted budget projects an increase in revenues of 6.5% or $459,148. Of the projected
increase, $155,043 is attributable to increases in intergovernmental revenue and regulation and
compliance revenues, $26,052 from sources other than general property taxes and $278,177 from
property taxes. Notable revenue changes from adopted 2021 to adopted 2022 are explained below:

Taxes (other than property)
    $20,000 increase in room tax revenue.

    $12,745 decrease in Utility PILOT (Payment in Lieu of Taxes).

Intergovernmental Revenues
    $74,095 increase in expenditure restraint program (last qualification year was 2017 with
     payment in 2018).

    $22,158 increase in Transportation Aids per DOT notification.

    $57,222 decrease in county library funding due to decreased operating expenses in 2020.

    $22,000 increase in grant funding supporting tourism activities.

Regulation & Compliance Revenues
    $50,000 increase in building and permit revenue. Building and permit revenue has remained
     strong throughout 2020 and 2021. Budgeted revenue is based upon actual prior year trend.

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General Fund Expenditures
Expenditure Summary
General Fund operating expenditures represent the City’s financial commitment to provide residents
with reliable, efficient and economic public services. Over the last five years, New Richmond has
experienced strong residential and commercial growth that has increased the demand for City
services.

The adopted 2022 budget continues to balance growing needs with fiscal conservatism. These policies
and directives are designed to maintain reserves and financial flexibility while ensuring that
community health, safety and general welfare needs are met.

Total General Fund expenditures for 2022 are budgeted at $7,485,293, an increase of 6.5% or
$459,148 from prior year budget.

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Notable service segment changes from adopted 2021 budget to adopted 2022 budget include:

       Patrol Officers (+$137,000) ‐ Addition of two sworn patrol officers (April 1 and August 1).
        Calls for service have increased 53% over the last 5 years with the number of sworn officers
        remaining flat from 2009 to 2018, when the SRO position and K9 position were added. The
        addition of patrol officers will help the department meet increasing service demands.

       Salaries and Wages (+$88,000) – A cost of living adjustment of 2.0% for non‐union
        employees and 2.5% for union employees (per union contract). The adjustment is tiered at
        1.0% at 1/1/22 and 1.0% at 7/1/22 for non‐union and 1.25% at 1/1/22 and 1.25% at 7/1/22
        for union.

       Medical Reserve Account (+$45,000) – Allocation of funds to cover the unfunded Medical
        Reserve Account obligations to employees upon retirement. The City’s current liability is
        $475,000 of which $44,000 is funded. The current funding plan anticipates a fully funded
        liability by 2028.

       Health Insurance (+$60,000) – On an annual basis, the City Council evaluates various health
        insurance options, balancing cost and overall value of the benefit. Over the last eight years,
        the City’s insurance costs have remained relatively flat due to changes to plan design and
        increased cost share contributions from employees. The initial 2022 renewal was a 54%
        increase, and was later negotiated down by the City’s broker to 25%. The renewal plan for
        2022 is in line with benchmarks and remains competitive to attract and retain staff.

       Community Development Assistant (+$72,000) – Position added mid‐year in 2021. Increase
        in 2022 reflects full year position.

       Library Director (+$50,000) – Position was budgeted at 50% in 2021 with a 2Q hire date.
        Increase in 2022 reflects full year position.

       Impact fee study (+$10,000) – The City’s last impact fee study was conducted in 2015. Best
        practice is to update studies every 3‐5 years based upon capital improvement plan. An
        updated study will ensure fees are in alignment with the current capital improvement plan
        and support continued infrastructure growth due to development.

       Cemetery (+$15,000) – Expenses associated with the maintenance and care of the
        cemetery are not fully supported by annual revenues received through lot sales, grave
        openings, etc.

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Expenditures by Program

General Government
General government activities include overseeing daily operations, coordination of citywide projects,
budget preparation, financial management, municipal court, building inspections, and providing
assistance to other City departments.

The 2022 adopted General Government budget is an increase of 12.4% or $142,672 from prior year.
Notable service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Medical Reserve Account – The City’s current liability is $475,000, of which $44,000 is funded.
     The current funding plan anticipates a fully funded liability by 2028.

    Community Development Assistant – Position added mid‐year 2021. Increase in 2022 reflects
     the full year position cost.

    Legal Services – The budget for legal expenses has been adjusted to more accurately reflect
     trend.

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Police Department
The New Richmond Police Department is staffed by 18 sworn police officers including the Chief of
Police, Lieutenant, two Patrol Sergeants, three Detectives, a K9 officer, and a School Resource Officer.
The department is supported by two civilian administrative assistants. Through community
partnership and service, the agency’s focus is on citizen safety and trust.

The 2022 adopted budget for the Police Department is an increase of 8.1% or $210,886 from prior
year. Notable service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Patrol Officers (+$137,000) – Addition of two sworn patrol officers (April 1 and August 1). Calls
     for service have increased 53% over the last 5 years with the number of sworn officers
     remaining flat from 2009 to 2018, when the SRO position and K9 position were added. The
     addition of a patrol officers will help the department meet increasing service demands.

    Cost of Living Adjustment (+$64,732) – A cost of living adjustment of 2.5% for union
     employees (per union contract). The adjustment is tiered at 1.25% at 1/1/22 and 1.25% at
     7/1/22 for union.

    Inflationary cost increases for general operating equipment and supplies.

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Ambulance & Public Safety
New Richmond Area Ambulance Service (NREMS) is a team of professionals dedicated to providing
quality pre‐hospital care to the communities it serves by facilitating immediate transport of the ill and
injured as well as partnering with the community to promote health and safety programming. NREMS
serves the City of New Richmond, eight townships, and one village covering 220 square miles. The
expenditures shown below represent the City’s portion of operating costs.

The 2022 adopted budget for Public Safety is a decrease of 5.3% or $8,071 from prior year. Notable
service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Ambulance (+$3,129) – 2.9% increase to cover inflationary supply and operating costs.

    Dam (‐$10,000) – Decrease in 2022 maintenance costs due to every‐other‐year comprehensive
     inspection schedule.

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Public Works
The Public Works Department is responsible for maintaining the City’s local, collector, and arterials
streets as well as parkland, trails, water distribution, and wastewater collection/treatment systems.
The Public Works Department is comprised of a Public Works Director, Operations Manager, seven
full‐time Public Works 1 and 2 employees as well as seasonal employees. Note that the Water and
Wastewater budgets are accounted for in the New Richmond Utilities budget.

The 2022 adopted Streets budget is an increase of 1.1% or $11,858 from prior year. Notable service
segment changes from adopted 2021 budget to adopted 2022 budget include:

    Salaries (‐$16,623) – 4.7% decrease due to reallocation of employee hours based upon actual
     trends, hours have been redistributed to parks and storm water utility.

    Street & Sidewalk (+$3,750) – 4.3% increase in street maintenance to address annual repairs
     and patching. Streets and sidewalk funding remains lower than pre‐COVID funding levels.

    Traffic Control (+$5,000) – 2.8% increase to address traffic signage replacement and repairs
     that are worn or dated.

    Machinery & Equipment (+$5,000) – 6.3% increase in repairs and maintenance of equipment
     and machinery based upon trend and inflationary increases.

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Public Works (Continued) – Parks

The 2022 adopted Parks budget is an increase of 10.4% or $38,839 from prior year. Notable service
segment changes from adopted 2021 budget to adopted 2022 budget include:

    Salaries (+$25,020) – 12.4% increase due to reallocation of employee hours based upon actual
     trends, with hours be redistributed from streets to parks and storm water utility.

    Operational and recreational supplies (+$4,500) – 11.5% increase in park supplies such as
     mulch, irrigation, portable toilets, etc. This level of funding will provide the minimum safety
     standard to address mulch replenishment and irrigation to preserve fields.

      The City currently pays 100% of the cost for utilities at Citizens Field, $3,000 at Hatfield Park
       and $15,000 for the Sports Center. These expenses are anticipated to be offset through a
       tourism grant. The grant is reflected as revenue for accounting purposes.

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Library
The Friday Memorial Library seeks to be a dynamic and friendly hub for the community, a gathering
place for people in the New Richmond area to learn, explore, and connect. It offers books, movies,
music, and exciting programs for all ages. The library is staffed with five full time and eight part time
employees.

NOTE: The above expenditure summary illustrates a possible allocation of funds for the library.
Once the Council has adopted a budget amount, the Library Board is responsible for the formal
allocation of funds. Expense distributions between categories could change based on Library Board
direction, but the overall amount cannot exceed the Council‐approved total.

The 2022 adopted budget for the Library is an increase of 7.6% or $59,323 from prior year. Notable
service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Library Director (+$50,000) – Position budgeted at 50% in 2021 with a 2Q hire date. Increase in
     2022 reflects full year position.

    Retirement of one full time staff in 2021 (‐$15,000) ‐ Full time position vacated due to
     retirement. Position filled with two part time staff resulting in a decrease of $15,000 in salary
     and benefits.

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Airport
The New Richmond Regional Airport serves the Eastern Twin Cities Metro Area and Western
Wisconsin as the only public use airport in St. Croix County. The Airport is home to 196 aircraft and
11 aviation businesses. The Airport Manager and Airport Coordinator are responsible for daily
operations.

Notable service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Supplies & Maintenance (+$1,900) – 2.7% increase to address inflationary increase for
     operational supplies and costs associated with repairs and maintenance of equipment and
     airport grounds.

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Economic & Community Development
The Community Development department is responsible for administering the City’s land use policies,
including building, zoning and subdivision ordinances, ensuring healthy and sustainable growth. The
Community Development Director works closely with Forward New Richmond and City Council to
market and promote economic development.

The 2022 adopted budget for Economic and Community Development is an increase of 5.0% or
$10,407 from prior year. Notable service segment changes from adopted 2021 budget to adopted
2022 budget include:

    Benefits (+$17,547) – Increase in benefits is attributable to open Planning position. Benefit
     elections for open positions are budgeted at family coverage until filled.

    Training & Education (+$1,600) – Increase in training and education budget to support
     onboarding for open Planner position.

    Professional Services (‐$15,000) – Decrease in consulting services in anticipation of Planner
     position being filled.

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Culture, Taxi, Health & Social Services

Culture
Culture programs support community events, local access programming, façade grants and historic
preservation.

Taxi
The City has partnered with Running, Inc. since 2014 to provide public transportation to residents.
The program is largely funded through the State Urban Mass Transit assistance program. The 2022
adopted amount reflects the City’s anticipated share of costs.

Health & Social Services
Animal control services are supported under health and social services. The City’s animal control
issues are fielded by the police department; third party services are contracted for kenneling and care
of animals taken into custody.

.

The 2022 adopted budget for Culture, Tourism, Taxi and Social Services is an increase of 4.3% or
$5,800 from prior year. Notable service segment changes from adopted 2021 budget to adopted
2022 budget include:

       Community Recharge (‐$10,000) – This program was established for budget years 2020‐
        2021 to address the economic impact of COVID 19. This program has been removed from
        the 2022 budget.

       Tourism Committee (+$14,000) – The Tourism Committee is responsible for distributing
        70% of room tax revenue collected. Revenues and corresponding grant disbursements are
        anticipated to be higher than 2021 adopted.

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Fire Department Fund
New Richmond Fire & Rescue operates with an interim part‐time Chief, two assistant chiefs, and
twenty‐seven paid‐on‐call firefighters. The department provides fire prevention, fire suppression, fire
inspections, extrication, and rescue operations for the City of New Richmond, five townships, and one
village, covering 150 square miles.

In 2020, a special revenue fund was established to account for the activities of the Fire Department.
The City’s portion of operating costs are approximately 54.1% of total O&M costs. The City levies for
Fire Department services under the general fund levy and is reflected as a transfer out and under the
capital replacement levy for equipment replacement.

The 2022 adopted budget for the Fire Department is a decrease of 3.1% or $25,058 from prior year.
Notable service segment changes from adopted 2021 budget to adopted 2022 budget include:

    Yearly health screenings

    Additional training and education

    Inflationary cost increases in general operations and supplies

    Capital investments:
           Replacement of rescue airbags
           Refurbishment of rescue engine 3271
           Replace rescue air bags and harnesses
           Station vehicle bay ventilation system
           Bunker gear for new firefighters
           Wildland gear and brush truck outfitting
           Decontamination trailer

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DEBT SERVICE FUND
The debt service fund is used to manage the payment of principal and interest due on the City’s
general obligation bonds and other debt obligations. The City of New Richmond issues three types of
debt:
    General Obligation (GO) bonds and notes support capital improvement projects such as
     streets, trails, and large equipment. This type of bond is backed by the City’s full‐faith‐and‐
     credit (ability to collect property taxes).
    Tax Increment bonds and notes support infrastructure improvements within Tax Increment
     Districts (TIDs). This type of GO debt is repaid by property taxes generated in the TID.
    Revenue Bonds support construction of Electric, Water, and Sewer Utility capital
     improvements. This type of bond is repaid via revenue generated from user fees. Revenue
     bonds are accounted for in the New Richmond Utilities budget.

The City’s general obligation debt outstanding at December 31, 2021 will be $17,917,478. The City’s
total general obligation payments in 2022 are $2,722,846. TID and other sources pay 58% of the debt
levy with the remaining 42% being paid through property taxes. The debt service component of the
adopted 2022 property tax levy is $1,470,209, an increase of $34,783 or 2.4% when compared to prior
year.

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CAPITAL REPLACEMENT LEVY

The Capital Replacement Levy (CRL) is a portion of the annual property tax levy that is set aside
specifically for capital maintenance and replacement activities. The 2022 Capital Plan identifies
$208,000 in projects; $115,000 of projects are supported by the CRL and the remaining are
anticipated to be financed. Capital items planned for replacement in 2022 include:

Replace Civic Center Furnaces #1 and #2                                          $10,000
Furnace #1 covers the southwest and west side of the Civic Center, while Furnace #2 covers the
northwest and west end of the building. Both units were manufactured in 2001 and have a life
expectancy of 15‐20 years.

Replace Civic Center West Thermostats                                             $11,000
The three Civic Center west furnaces are controlled by a Bryant Zone Perfect Plus Control system. In
the last several years, there have been some issues with the thermostats holding information
correctly and functioning properly. Recent quotes for a modern system upgrade average around
$11,000.

Replace FD Rescue Harnesses                                                         $4,061
Expired (10‐year life).

Fire Dept. Bunker Gear (New Hires)                                                $10,828
One set for each of the new hires; could be reduced if some of the recently purchased bunker gear is
used differently (not all firefighters need two sets depending on whether they are an operator,
interior, etc.).

FD Wildland PPE & Brush Truck Equipment                                             $5,414
Wildland PPE and outfitting of brush truck to address wildland fires. Capital investment is partially
offset by DNR wildland grant.

FD Decontamination Trailer                                                          $3,519
Westfield’s Hospital donated decontamination equipment to the fire department. The equipment is
used for hazardous events where decontamination is required for patients or firefighter/EMS
responders affected by a hazardous zone. The equipment donated includes a full spectrum response
kit, which will suffice for any hazardous event that does not exceed the training and responsibilities of

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the New Richmond Fire and Rescue department members. Westfield’s Hospital is required to keep
the original trailer the equipment was stored and delivered in. Therefore, the New Richmond Fire
department is in need of an enclosed trailer to store and transport the equipment as needed.

Police Department Body Cameras                                                 $5,000
The Police Department currently has 10 cameras (18 sworn staff) and one charging/dock station.
Body cameras are in continuous use, and there are situations where cameras are not charged and/or
available to all on‐duty staff.

Replace 2017 Dodge Caravan (Taxi)                                                $11,000
The two vehicles that are used to support New Richmond’s Shared Ride Taxi Service are owned by the
City but operated by a contracted provider. The State of Wisconsin recommends taxi replacement at
100K miles; Taxi Van #14 has 143,330+ miles. Purchasing through the State will provide the City with
an 80/20 cost share, reducing the cost from approximately $55,000 to $11,000.

Refurbish Fire Engine 3271                                                           $13,535
Engine 3271 is the oldest vehicle in the fleet, purchased in 1997, and will require some larger
mechanical upgrades in order to serve an additional 5‐10 years. The estimated replacement cost of
the vehicle is $650K. More information will be known after Custom Fire completes the vehicle
inspection this fall.

Replace Parks/Streets Truck #48                                                   $75,000
Current vehicle is 2001 Dodge 3/4 ton with dump body. This truck is used on average two days per
week throughout the year for hauling branches and material for smaller projects where dump trucks
are not needed. Staff also uses 3/4 ton pickup trucks for plowing alleys and dump truck to sand them
when necessary. Most alleys are narrow and difficult to navigate with large dump trucks. The new
truck with a dump body would be bid to be outfitted with a plow and removable sand hopper for alley
maintenance. The Wisconsin DOT Highway Maintenance Manual estimates life expectancy at 10
years.

Replace Detective Vehicle #21                                                     $38,000
Current detective vehicle #21 is a 2016 Dodge Grand Caravan. Patrol vehicles follow a three‐year
recommended replacement schedule in order to maintain fleet reliability, response times, and officer
safety. Detective vehicles are recommended for replacement every five years as they receive less
annual wear and mileage than patrol vehicles.

Computer Hardware Replacements                                                  $20,000
This provides for the regular replacement of computers and/or related hardware that is either
obsolete or no longer functional.
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