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2025-08-12 - AGE - City Council Work Session August 12, 2025 — 6:30 PM Golden Valley City Hall Council Conference Room 1.Review Quarterly Report for Select City Funds 2.Review the 2026 Proposed Budget 3.Council Review of Future Draft Agendas CITY COUNCIL WORK SESSION AGENDA Council Work Sessions have an informal, discussion-style format and are designed for the Council to obtain background information, consider policy alternatives, and provide general directions to staff. No formal actions are taken at work sessions. The public is invited to attend Council Work Sessions and listen to the discussion; public participation is only allowed by invitation of the City Council. Discussion Item(s) City of Golden Valley City Council Work Session August 12, 2025 — 6:30 PM 1 EXECUTIVE SUMMARY Finance 763-512-2345 / 763-512-2344 (fax) Golden Valley City Council Work Session August 12, 2025 Agenda Item 1. Review Quarterly Report for Select City Funds Prepared By Lyle Hodges, Finance Director Summary This is a presentation of the financial status of select City Funds as of June 30, 2024. This is an interim review of revenue, expenses, fund balance, and cash position where applicable. During the course of the year, City Finance staff prepare and review reports regularly with department staff to track budget to actual performance. This mid-year report serves as a broader check-in on budget to actual performance with preliminary projections for year-end based on the trends through the first six months of 2025. Financial or Budget Considerations No direct financial impacts, informational report only. Legal Considerations No legal implications. Equity Considerations No equity implications. Recommended Action Receive and file a presentation on the second quarter 2025 financial status report of select City funds. Supporting Documents 2025 Q2 Report Presentation.pptx 2025 Q2 Financial Status Report.pdf 2 Second Quarter 2025 Financial Status Update City Council Work Session August 12, 2025 3 Quarterly Report Overview •Financial report as of June 30, 2025: •General Fund •Collected 54.9% of the budgeted revenue (other than property taxes) •Spent 44.5% of the expenditure budget •Projected to finish the year with a slight fund balance reduction of $(156,698) •Rollover of unspent budget from 2024 to 2025 resulted in a planned reduction of fund balance of $(1,156,249) •Special Revenue and Capital Project Fund •Spending close to budget and projected to be slightly under budget overall •Includes the operational budget of the HRA •Enterprise Funds •Planned capital investments were projected to decrease cash, but actual spending is projected to be less than budgeted •Operational activities are projected to result in gains in all funds 4 General Fund Summary •Through mid-year, General Fund revenue from sources other than property taxes is trending slightly better than budgeted •License and Permit Revenue is at 63.5% of budget, projected to finish the year better than budgeted •Tax collections arrive in July, so nothing to report through June, but projected to finish slightly under budget due to delinquencies and value adjustments •Other revenue categories currently projected to finish the year close to budget •Since 2020, the General Fund has received an average of 104.9% of total budgeted revenues •Overall, General Fund spending through June 30 is $14.6M or 44.5% of the budget •Nearly all departments are trending under budget and projected to finish the year below budget •Around 60% of the General Fund budget is for personnel (salary and benefits) so staffing levels, hiring replacements, and other personnel related changes are impactful to overall spending •Since 2020, the General Fund has spent an average of 96.7% of total budgeted expenditures 5 General Fund Summary Note – City Management & Admin. includes City Council, City Manager, Legal & Clerk, Admin Services, Communications, Finance, and Insurance. Public works includes Building Maintenance, Park Maintenance, and Streets. Revenues 2024 Budget 2024 Year End Actual 2025 Budget 2025 Year to Date 2025 Year End Projected Variance to Budget (Projected) Projected Amount as a Percent of Budget Property Taxes 26,613,525$ 25,684,437$ 27,800,845$ 9,055$ 27,244,828$ (556,017)$ 98.0% Licenses Fees Permits 1,613,270 3,461,000 2,010,325 1,284,146 2,428,520 418,195 120.8% Charges for Service and Fines 666,795 739,650 718,430 395,815 803,403 84,973 111.8% Transfers In 895,000 991,657 895,000 385,600 895,000 - 100.0% Investment Earnings & Other 322,100 1,501,087 361,100 120,254 547,100 186,000 151.5% Total Revenue 30,110,690 32,377,831 31,785,700 2,194,871 31,918,851 133,151 100.4% Expenditures City Management & Admin 6,364,135 6,497,619 7,667,865 3,417,977 7,612,923 54,941 99.3% Police 8,533,560 8,058,085 8,359,966 3,832,457 8,184,966 175,000 97.9% FIre 2,318,220 2,039,587 2,799,827 1,266,704 2,724,827 75,000 97.3% Public Works 5,631,150 5,384,852 6,094,754 2,516,353 5,844,754 250,000 95.9% Parks & Recreation 1,528,070 1,205,477 1,587,097 643,614 1,507,742 79,355 95.0% Community Development 2,610,555 2,301,981 3,062,946 1,336,858 2,925,336 137,610 95.5% Contingencies - - 94,494 - - 94,494 Transfers Out 3,375,000 3,375,000 3,275,000 1,637,500 3,275,000 - 100.0% Total Expenditures 30,360,690$ 28,862,601$ 32,941,949$ 14,651,463$ 32,075,549$ 866,400$ 97.4% Change in Fund Balance (1,156,249) (12,456,593) (156,698) Fund Balance January 1 26,542,655 26,542,655 26,542,655 Fund Balance December 31 (Unaudited)25,386,406$ 14,086,062$ 26,385,957$ General Fund Financial Status Report As of June 30, 2025 6 General Fund Summary •Cash balance as of January 1, 2025, was $29.1M, an increase of $4.3M over December 31, 2023, cash of $24.8 million •Fund Balance as of January 1, 2025, was $26.5 million, an increase of $3.7 million compared to year-end 2023 fund balance of $22.8M - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Projected General Fund Revenue & Expenditure with Change in Cash and Fund Balance 2021-2025 (projected) Expenditure Revenue Cash Fund Balance 7 Special Revenue Funds •Special revenue funds account for revenue that is restricted for use on specific activities. Fund balance is reported as restricted or committed for the intended use •There are two Special Revenue Funds in this Report: •Community Services Commission – accounts for the activity of the CSC with revenue from local gambling (pull tabs) and fundraisers. Expenditures of the fund go to local organizations that address human services needs. •Revenue is projected to finish the year $6,000 under budget and expenditures are projected to finish the year $1,500 under budget. January 1, 2025 beginning fund balance was $161,831 •Brookview Facility – accounts for the activity of the Brookview Facility with revenue from room rental and fees for use of the indoor play area with expenditures to support those functions •Revenue is projected to finish they year $52,025 under budget while expenditures are projected to finish the year $14,930 under budget. Fund balance at the beginning of 2025 was $738,205. 8 Housing & Redevelopment Authority (HRA) •For 2025, the HRA is projected to collect revenue from the property tax levy and Local Affordable Housing Aid (LAHA). The LAHA revenue will be more than budgeted. •Expenditures include operations and work to develop housing and development opportunities throughout the City. The operating statement to the right shows details. 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Taxes 314,181$ -$ 307,897$ (6,284)$ State Aid 137,095 171,877 343,754 206,659 Investment Earnings - - 13,500 13,500 Total Operating Revenue 451,276 171,877 665,151 213,875 Operating Expenses Personnel 191,181 90,806 186,396 4,785 Materials/Supplies 300 115 300 - Contractual Services 259,795 22,365 250,000 9,795 Total Operating Expenses 451,276 113,286 436,696 14,580 Operating Revenue Over/ (Under) Expense - 58,591 228,455 199,295 Change in Fund Balance -$ 58,591$ 228,455$ Fund Balance at January 1 353,491$ 353,491$ Projected Fund Balance at December 31 353,491$ 581,946$ Housing and Redevelopment Authority Capital Project Fund Operating Statement Through June 30, 2025 9 Enterprise Funds •Enterprise funds operate as business-type activities. These funds sell products or services outside the organization and use the proceeds to support operations, capital investments, debt service and transfers. •There are five enterprise funds at the City – Utility (Water & Sewer), Storm Sewer, Recycling, Brookview Golf Course, and the Motor Vehicle fund (DMV Office). 10 Enterprise Funds •In the snapshot below, you can see the difference between operating gains and the change in cash position for each enterprise fund. •Operating gains are most often used to pay for capital projects, transfers and debt service costs. Fund Operating Revenue Operating Expense Operating Gain/(Loss) Change in Cash Position Utility 13,118,172$ 5,182,453 7,935,719 1,063,583$ Storm Sewer 4,839,363$ 1,340,455 3,498,908 1,080,279$ Recycling 1,152,812$ 933,104 219,708 144,708$ Brookview Golf Course 4,740,621$ 4,182,860 557,761 146,661$ Motor Vehicle 553,700$ 491,912 61,788 31,788$ 11 City of Golden Valley Financial Status Report of Select Funds as of June 30,2025 12 ExecuƟve Summary City of Golden Valley Interim Financial Report as of June 30,2025 Overall, the City of Golden Valley is in a stable ﬁnancial posiƟon with planful spending and higher than expected revenue allowing the City to deliver services in a cost-effecƟve and efficient manner. The General Fund has shown growth in both cash and fund balance over the past several years. While current projecƟons show a slight decrease for 2025, the fund remains in a strong ﬁnancial posiƟon. While cash is projected to increase in the uƟlity enterprise funds including water, sewer, and storm water, this reﬂects capital spending below budget resulƟng in cash reserves for future spending. This report covers the ﬁnancial acƟvity of various funds of the City of Golden Valley through June 30, 2025. Once per year, aŌer a complete audit, the City issues official ﬁnancial statements Ɵtled the Annual Comprehensive Financial Report (ACFR). Unlike the formality of the fully audited annual report, this interim report is meant to provide a snapshot of the primary operaƟng funds of the city, comparing budgets to actual, and providing projected informaƟon for year-end revenue and spending. The report contains a summary of ﬁnancial acƟvity for the General Fund, certain Special Revenue Funds, the HRA Capital Project fund, and the City’s Enterprise funds. Generally accepted accounƟng principles (GAAP) for governments as set forth by the Governmental AccounƟng Standards Board (GASB), require that different types of funds use different accounƟng measures. While these statements do not strictly adhere to full GAAP reporƟng, the ﬁnancial statements and analysis that follow use slightly different terms depending on the type of fund under discussion and the measurement focus of the accounƟng methodology we’re expected to use. For a complete lisƟng of the accounƟng principles used in our audited ﬁnancial reporƟng, please see Note 1 of the City’s ACFR. While the City looks forward to ongoing ﬁnancial stability with a core set of strategic iniƟaƟves to guide our operaƟons in 2025 and beyond, we remain aware of the external economic inﬂuences that impact all local governments. We expect to close out our American Rescue Plan act spending by the end of 2025 with investments in capital projects. Last year, 2024, was also the ﬁnal year of the City’s Pavement Management Program before switching to the Infrastructure Renewal Program (IRP) to maintain the city’s vital infrastructure assets in 2027. The 2025 Budget was adopted by Council in December of 2024 and looks to make investments in employee engagement and training, organizaƟonal and community strategic planning, and increased operaƟonal costs. The 2026 Budget is currently being created and will conƟnue thoughƞully allocaƟng resources to areas of strategic importance for Golden Valley. 1 13 General Fund Analysis City of Golden Valley as of June 30, 2025 Overview The City’s General Fund is used to account for all ﬁnancial acƟvity not required to be accounted for in another fund. This fund reports the proceeds of the general property tax levy as well as various fees, permits, and licenses. We account for the acƟvity of many operaƟng departments in the General Fund including Police, Fire, City Manager, Legal and City Clerk, Finance, Community Development, Parks and RecreaƟon and several Public Works departments such as Building Maintenance, Park Maintenance, and Streets. Revenue The City’s property tax levy comprises approximately 87.5% of the budgeted General Fund revenue. Taxes are received from Hennepin County in two payments throughout the year resulƟng in large jumps in revenue in July and December. The remainder of revenues in the General Fund are Licenses, Permits, Fees for Public Works and Park and RecreaƟon services, and Investment Earnings. Through June 30,2025, the General Fund collected approximately $2,185,816 or 54.9% of budgeted revenue, other than property taxes, compared to collecƟng $2,307,190 or 65.8% of budgeted revenue through the same period in 2024. Much of the difference between 2024 and 2025 is aƩributable to lower permit revenue. Although, 2024 was the highest post-pandemic year for permit revenue, 2025 is sƟll trending over budget for permit revenue. In total, the General Fund is projected to collect $31,918,851 or $133,151 more revenue than is budgeted for 2025. Property Tax CollecƟons will likely be about 2.0% under budget. This is due to delinquent payments, reducƟons in amounts owed based on valuaƟon challenges and other acƟviƟes that result in incomplete collecƟon of levied taxes. However, we are projecƟng the licenses, permits, and investment earnings to more than offset the reduced property taxes which leads to total collecƟons of 100.4% of the budget. Expenditure The departments in the General Fund operate under a budget adopted by the City Council. The originally adopted budget for 2025 was balanced, however carryover items from 2024 to 2025 increased the expenditure budget by $1,156,249. Of that total, $902,003 was related to unspent Public Safety Aid for Police and Fire. Approximately 58.5% of the expenditure budget in the General Fund is dedicated to personnel including salaries, insurance, and other beneﬁts. In addiƟon, 9.9% of the General Fund budget is for transfers to various funds to offset the cost of capital improvements and other acƟviƟes. The remaining 31.6% of the budget is for materials and supplies, contractual services, and charges from other City funds such as vehicle maintenance. Through the second quarter of 2025, departments in the General Fund spent 44.5% of the total expenditure budget compared to 42.2% through the same period of 2024. Overall most departments are projected to be within 5.0% of budget while the overall general fund is projected to be approximately 2.6% under budget. The Legal Services department is seeing costs for outside prosecuƟon services exceed budget and the insurance premium for general liability is more than budgeted. Cash and Fund Balance The General Fund cash balance as of December 31, 2024, was $29,073,460 and the cash balance as of December 31, 2023, was $24,791,588. Fund balance at the end of 2024 was $26,542,655, or 77.1% of the 2025 budget. This represents an increase to fund balance of $3,793,547 over the 2023 balance due to revenues exceed budget and expenditures coming in less than budgeted during 2024. 2 14 Revenues2024 Budget2024 Year End Actual 2025 Budget2025 Year to Date2025 Year End ProjectedVariance to Budget (Projected)Projected Amount as a Percent of BudgetProperty Taxes26,613,525$ 25,684,437$ 27,800,845$ 9,055$ 27,244,828$ (556,017)$ 98.0%Licenses238,805 285,517 253,925$ 259,072$ 388,608 134,683 153.0%Permits1,363,650 3,142,554 1,739,650$ 1,007,456$ 2,014,912 275,262 115.8%Grants and Fines115,920 255,300 143,280$ 156,253$ 228,253 84,973 159.3%Government Fees10,815 32,929 16,750$ 17,618$ 25,000 8,250 149.3%Public Safety36,550 40,471 44,150$ 27,202$ 44,150 -100.0%Public Works198,625 144,619 207,300$ 94,891$ 207,300 -100.0%Park and Recreation315,700 299,261 323,700$ 117,469$ 323,700 -100.0%Transfers In895,000 991,657 895,000$ 385,600$ 895,000 -100.0%Investment Earnings125,000 1,046,840 164,000$ -$ 350,000 186,000 213.4%Other Revenue197,100 454,247 197,100$ 120,254$ 197,100 -100.0%Total Revenue 30,110,690 32,377,831 31,785,700 2,194,871 31,918,851 133,151 100.4%ExpendituresCity Council and Boards314,920 351,517 343,225 137,250 343,225 -100.0%City Manager436,740 544,037 1,025,152 321,176 875,152 150,000 85.4%Police8,533,560 8,058,085 8,359,966 3,832,457 8,184,966 175,000 97.9%Fire2,318,220 2,039,587 2,799,827 1,266,704 2,724,827 75,000 97.3%Legal Services and City Clerk850,795 952,970 1,124,066 541,009 1,290,545 (166,479) 114.8%Administrative Services2,461,485 2,332,791 2,974,346 1,295,576 2,884,493 89,853 97.0%Communications462,395 443,378 570,409 254,738 561,378 9,031 98.4%Public Works5,631,150 5,384,852 6,094,754 2,516,353 5,844,754 250,000 95.9%Community Development2,610,555 2,301,981 3,062,946 1,336,858 2,925,336 137,610 95.5%Parks and Recreation1,528,070 1,205,477 1,587,097 643,614 1,507,742 79,355 95.0%Finance1,457,800 1,483,237 1,230,666 544,019 1,220,666 10,000 99.2%Insurance380,000 389,690 400,000 324,209 437,464 (37,464) 109.4%Contingencies--94,494 - - 94,494 0.0%Transfers Out3,375,000 3,375,000 3,275,000 1,637,500 3,275,000 -100.0%Total Expenditures 30,360,690$ 28,862,601$ 32,941,949$ 14,651,463$ 32,075,549$ 866,400$ 97.4%Change in Fund Balance(1,156,249) (12,456,593) (156,698) Fund Balance January 126,542,655 26,542,655 26,542,655 Fund Balance December 31 (Unaudited) 25,386,406$ 14,086,062$ 26,385,957$ As of June 30, 2025Financial Status ReportGeneral FundCity of Golden Valley3 15 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Pull Tabs 42,500$ 19,118$ 42,000$ (500)$ Fundraisers 16,000 9,340 10,500 (5,500) Interest on Investments --500 - Total Operating Revenue 58,500 28,458 53,000 (6,000) Operating Expenses Supplies 8,000 3,733 8,000 - Allocations 50,500 49,000 49,000 (1,500) Total Operating Expenses 58,500 52,733 57,000 (1,500) Change in Fund Balance -$ (24,275)$ (4,000)$ Fund Balance at January 1 161,831$ 161,831$ Projected Fund Balance at December 31, 2025 161,831$ 157,831$ Community Services Commission Special Revenue Fund Operating Statement Through June 30, 2025 Status Summary This fund is used to account for the activity of the Community Services Commission (CSC). Revenue comes from pull tabs from four business around Golden Valley as well as fundraising efforts throughout the year. The CSC meets regularly and decides how to allocate resources to support organizations and programs that address human services needs within the City. As of June 30, 2025 the CSC received $19,118 in pull tab revenue which is approximately 45% of the budgeted amount of $42,500. Through June 30 of 2024, pull tab revenue totaled $15,089 so collections are up year-to-date over last year. In addition, the CSC has received more than half of its budgeted fundraising revenue, collecting $9,340 or 58.4% of the budgeted amount of $16,000. Through June 30, 2025, the CSC spent $49,000 to support various organizations throughout Golden Valley. There are no more expected allocation payments to other organizations for the remainder of 2025. In addition, the CSC has spent $3,733 to date on operations to support their work. For 2025, the CSC is budgeted to collect a total of $58,500 through pull tab and other fundraising activity which will be fully used to support local organizations and the CSC itself. 4 16 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Banquet Facilities 373,000$ 116,027$ 302,527$ (70,473)$ Catering Rental 25,000 5,385 17,885 (7,115) Backyard Indoor Play Area 281,500 131,313 272,063 (9,437) Investment Earnings - - 35,000 35,000 Total Operating Revenue 679,500 252,725 627,475 (52,025) Operating Expenditures General Area Rooms 459,431 216,795 446,511 (12,920) Indoor Play Area 70,671 33,325 68,661 (2,010) Total Operating Expenditures 530,102 250,120 515,172 (14,930) Operating Revenue Over/ (Under) Expense 149,398 2,605 112,303 37,095 Non-Operating Revenue (Expenses) Capital 180,000 19,864 170,000 10,000 Change in Fund Balance (30,602)$ (17,259)$ (57,697)$ Fund Balance at January 1 738,205$ 738,205$ Projected Fund Balance at December 31 707,603$ 680,508$ Brookview Special Revenue Fund Operating Statement Through June 30, 2025 Status Summary The Brookview Special Revenue Fund is used to account for the revenues and expenditures at the Brookview Community Center facility. The primary sources of revenue are room rental for events and proceeds from fees for the use of the indoor play area. Primary expenditures consist of personnel, materials, and contractual services needed to maintain and support the rental rooms and indoor play area. There is also a capital plan to assist with maintenance of the facility. Through June 30, 2025, Brookview Community Center collected a total of $252,725 in revenue. This represents approximately 37.2% of budgeted revenue for the year. This is an increase of $26,826 or 11.0% over the revenue collected through June 2024. Year end revenue is projected to be $627,475 which is a similar 10.6% increase over total collections in 2024. As of June 30, 2024, Brookview Community Center spent a total of $250,120 on operating the General Area Rooms and the Indoor Play Area. That spending is approximately 47.2% of the budgeted amount of $530,102. Capital spending through the first half of 2024 was $19,864, only 11.0% of the budgeted amount of $180,000. Spending is up overall compared to June of 2024, but is still projected to finish the year under budget. 5 17 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Taxes 314,181$ -$ 307,897$ (6,284)$ State Aid 137,095 171,877 343,754 206,659 Investment Earnings - - 13,500 13,500 Total Operating Revenue 451,276 171,877 665,151 213,875 Operating Expenses Personnel 191,181 90,806 186,396 4,785 Materials/Supplies 300 115 300 - Contractual Services 259,795 22,365 250,000 9,795 Total Operating Expenses 451,276 113,286 436,696 14,580 Operating Revenue Over/ (Under) Expense - 58,591 228,455 199,295 Change in Fund Balance -$ 58,591$ 228,455$ Fund Balance at January 1 353,491$ 353,491$ Projected Fund Balance at December 31 353,491$ 581,946$ Housing and Redevelopment Authority Capital Project Fund Operating Statement Through June 30, 2025 Status Summary The Housing and Redevelopment Authority (HRA) Capital Project Fund serves as the main operating fund of the HRA. Within this fund, we deposit the proceeds of the HRA tax levy and the new-in-2024 Local Affordable Housing Aid (LAHA) from the State of Minnesota. The HRA pays for personnel, materials, and other operational needs from this fund as well as supporting an Affordable Housing Trust fund and other housing activity. Through mid-year 2025, the HRA Capital Project Fund collected $171,877 in revenue, which is just the first half LAHA revenue. Property taxes are collected in July and December so no revenue is recognized through June. LAHA revenue is set to exceed budget by over 100%. The 2025 budget was based on the 2024 allocation information, but the actual 2025 award increased significantly to a total of $343,754. Through the middle of 2025, the HRA fund spent $113,286 which is only 25.1% of the budget. It's expected that several projects will use up a significant amount of budget in the second half of 2025 The HRA fund balance at the beginning of 2025 was $353,491. As of mid-year projections, the fund is projected to increase fund balance to $581,946 by year end. 6 18 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Charges for Services 10,745,120$ 5,459,086$ 10,918,172$ 173,052$ Grants 750,000 - - (750,000) Investment Earnings 100,000 - 100,000 - Rents and Franchise Fees 2,058,000 1,024,459 2,100,000 42,000 Total Operating Revenue 13,653,120 6,483,545 13,118,172 (534,948) Operating Expenses Personnel 1,914,130 760,371 1,153,759 (760,371) Materials/Supplies 385,725 162,807 222,918 (162,807) Water & Sewer Services for Resale 3,509,000 887,397 2,621,603 (887,397) Sewer Fees 2,721,725 1,355,189 Contractual Services 1,266,950 175,403 1,091,547 (175,403) Vehicle Maintenance Charges 156,525 63,899 92,626 (63,899) Total Operating Expenses 9,954,055 3,405,066 5,182,453 (2,049,877) Operating Revenue Over/ (Under) Expense 3,699,065 3,078,479 7,935,719 1,514,929 Non-Operating Revenue (Expenses) Debt Service (369,975) - (189,360) 180,615 Capital (8,510,000) (2,127,224) (6,382,776) 2,127,224 Transfers (300,000) (150,000) (300,000) - Total Nonoperating Revenue (Expense)(9,179,975) (2,277,224) (6,872,136) 2,307,839 Change in Cash Position (5,480,910)$ 801,255$ 1,063,583$ 3,822,768$ Water and Sewer Utility Enterprise Fund Financial Status Report Through June 30, 2025 Status Summary The Water and Sewer Utility fund is used to account for the operational and capital activity of the City's water and sewer utility services. The fund has outstanding debt related to capital improvements and uses the revenues from charges to utility customers to fund payments on that debt. The fund also transfers $300,000 to the City's General Fund for various services provided by General Fund Departments. As of June 30, 2025, the Water and Sewer Utility fund collected revenue in the amount of $6,483,545 or 47.5% of the budgeted amount of $13,653,120. Charges for services to utility customers makes up a majority of revenue for the fund is up to $5,459,086 through mid year. In addition, the fund receives franchise fees from both Xcel Energy and CenterPoint Energy. The fund spent $3,405,066 of operating expenses or 34.2% of the budgeted amount of $9,954,055. In addition, the fund spent $2,127,224 or 25.0% of the budgeted capital budget and the one-half or $150,000 of the budgeted transfers. Remaining debt service in this fund is for an interfund loan set to be paid off in full in 2025. As of December 31, 2024, the cash balance in this fund was $15,903,634, compared to year-end 2023 cash balance of $13,724,035. 7 19 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Charges for Services 3,075,000$ 1,515,309$ 3,052,809$ (22,191)$ Grants 3,303,000 378,704 1,378,704 (1,924,296) Investment Earnings 110,500 - 225,000 114,500 Other Miscellaneous 238,400 - 182,850 (55,550) Total Operating Revenue 6,726,900 1,894,013 4,839,363 (1,887,537) Operating Expenses Storm Utility 456,461 268,260 487,384 30,923 Street Cleaning 202,822 60,484 161,895 (40,927) Environmental Control 828,736 276,808 691,176 (137,560) Total Operating Expenses 1,488,019 605,552 1,340,455 (147,564) Operating Revenue Over/ (Under) Expense 5,238,881 1,288,461 3,498,908 (1,739,973) Non-Operating Revenue (Expenses) Debt Service (180,300) - (180,300) - Capital (3,944,000) (7,223) (1,988,329) 1,955,671 Transfers (250,000) (125,000) (250,000) - Total Nonoperating Revenue (Expense)(4,374,300) (132,223) (2,418,629) 1,955,671 Change in Cash Position 864,581$ 1,156,238$ 1,080,279$ 215,698$ Storm Sewer Utility Enterprise Fund Financial Status Report Through June 30, 2025 Status Summary The Storm Water Utility Enterprise funds accounts for the operation and capital activities of the City's storm water system. The fund collects revenue through the utility bills to residential and commercial customers as well as various grants that may be available for use in storm water systems projects. In addition, the fund manages the City's Street Cleaning and Environmental Control activities. Through June 30, 2025, the fund collected 49.3% of budgeted revenue from utility charges which is in line with prior years. The grant revenue that makes up a majority of the 2025 budget is contingent upon reimbursement for capital project expenses and so can be quite variable in any given year. The fund spent approximately 40.7% or $605,552 of the operating budget of $1,488,019. In total, the activity of the fund is projected to resut in an increase to cash of $215,698 by year end. In addition to operations, the fund will complete all debt service obligations and transfers to the General Fund. 8 20 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Charges for Services 1,165,860$ 542,379$ 1,084,758$ (81,102)$ Grants 40,000 43,554 43,554 3,554 Investment Earnings 10,000 - 12,500 2,500 Other Miscellaneous 13,000 15 12,000 (1,000) Total Operating Revenue 1,228,860 585,948 1,152,812 (76,048) Operating Expenses Materials/Supplies 11,500 1,470 10,030 (1,470) Contractual Services 1,180,430 461,537 923,074 (257,356) Total Operating Expenses 1,191,930 463,007 933,104 (258,826) Operating Revenue Over/ (Under) Expense 36,930 122,941 219,708 182,778 Non-Operating Revenue (Expenses) Transfers (75,000) (37,500) (75,000) - Total Nonoperating Revenue (Expense)(75,000) (37,500) (75,000) - Change in Cash Position (38,070)$ 85,441$ 144,708$ 182,778$ Recycling Enterprise Fund Financial Status Report Through June 30, 2025 Status Summary The Recycling Utility fund accounts for the City's curbside recycling and organics collection services. The City contracts for both services and charges users a fee on their regular utility bill. The fund also transfers $75,000 to the City's General Fund to offset the cost of program administration. Through June 30, 2025, the fund collected $585,948 in revenue from users, grants, and other miscellaneous sources. This represents approximately 47.7% of the budgeted amount of $1,228,860. Total revenue for the year is projected to come in slightly under budget based on prorating revenue to date and projecting for the final half of the year. The rate of charges and participating users varies from year to year which can result in over and under collections in any given year. The fund spent $463,007 through June 30 which is 38.8% of the budgeted amount of $1,191,930. Nearly all spending is related to the contract for recycling and other services as mentioned above. The fund will complete the budgeted $75,000 transfer to the General Fund. 9 21 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Golf Course 1,940,000$ 814,656$ 1,995,907$ 55,907$ Golf Pro Shop 540,000 190,089 446,709 (93,291) 316 Grill 2,750,000 918,854 2,113,364 (636,636) Lawn Bowling/Other 165,000 53,856 134,640 (30,360) Investment Earnings - - 50,000 50,000 Total Operating Revenue 5,395,000 1,977,455 4,740,621 (654,379) Operating Expenses Golf Course 2,003,186 1,077,591 2,155,182 151,996 Golf Pro Shop 223,071 113,946 227,892 4,821 316 Grill 2,035,881 883,269 1,766,538 (269,343) Lawn Bowling/Other 36,919 16,624 33,248 (3,671) Total Operating Expenses 4,299,057 2,091,430 4,182,860 (116,197) Operating Revenue Over/ (Under) Expense 1,095,943 (113,975) 557,761 (538,182) Non-Operating Revenue (Expenses) Debt Service (111,100) - (111,100)- Capital (215,000) (83,928) (215,000)- Transfers (85,000) (42,500) (85,000) - Total Nonoperating Revenue (Expense)(411,100) (126,428) (411,100) - Change in Cash Position 684,843$ (240,403)$ 146,661$ (538,182)$ Brookview Golf Course and 316 Grill Enterprise Fund Financial Status Report Through June 30, 2025 Status Summary The Brookview Golf Course and 316 Grill Enterprise fund accounts for all business-type activities that take place at the Brookview property related to golf, restaurant, pro shop, and other recreational activities. The fund also pays debt service on an inter-fund borrowing related to the irrigation system project and manages other capital projects. In addition, the fund transfers $85,000 to the City's General Fund in 2025. As of June 30, 2025 the fund collected $1,977,455 or 36.6% of the budgeted revenue amount. Revenue is projected to end the year below budget with sales at the 316 Grill coming in under budget. THe Golf Course is projected to finish the year with revenue slightly higher than budgeted. The funds various business operations have spent a total of $2,091,430 or 48.6% of the budgeted amount of $4,299,057 through year-end. The Golf Course operations and the Pro Shop are projected to be slightly over budget while the Grill and other operations are projected to be under budget. 10 22 2025 Budget 2025 Actual Year to Date 2025 Projected Variance to Budget Operating Revenue Charges for Services 473,200$ 279,018$ 548,000$ 74,800 Investment Earnings 7,500 - 4,200 (3,300) Other Miscellaneous 1,500 191 1,500 - Total Operating Revenue 482,200 279,209 553,700 71,500 Operating Expenses Personnel 555,084 199,032 447,823 (107,261) Materials/Supplies 2,000 1,422 2,000 - Contractual Services 37,690 21,044 42,089 4,399 Total Operating Expenses 594,774 221,499 491,912 (102,862) Operating Revenue Over/ (Under) Expense (112,574) 57,710 61,788 174,362 Non-Operating Revenue (Expenses) Transfers (30,000) (15,000) (30,000) - Total Nonoperating Revenue (Expense)(30,000) (15,000) (30,000) - Change in Cash Position (142,574)$ 42,710$ 31,788$ 174,362$ Department of Motor Vehicles Enterprise Fund Financial Status Report Through June 30, 2025 Status Summary The Department of Motor Vehicles Enterprise fund operates a deputy registrar office to issue registration and licensing of motor vehicles and recreational crafts as well as issuing hunting and fishing licenses. The rates for most services are set by the State of Minnesota and the DMV remits a majority of registration fees to the State while maintaining a portion to offset costs. The fund also transfers $30,000 to the General Fund to offset costs of supporting the DMV. Through June 30, 2025 the revenue generated through the DMV was $279,209 which is 57.9% of the budgeted amount of $482,200. The fund spent approximately 37.2% or $221,499 of the $594,774 operating budget through mid-year. Revenue in the fund is almost entirely dependent on the volume of transactions the team is able to process. Every effort is made to efficiently process both walk-in customers and fleet or dealer customers that may drop off larger volumes of work for renewal. In addition, the DMV has one unfilled clerk position that will result in budget savings in 2025. 11 23 EXECUTIVE SUMMARY Finance 763-512-2345 / 763-512-2344 (fax) Golden Valley City Council Work Session August 12, 2025 Agenda Item 2. Review the 2026 Proposed Budget Prepared By Lyle Hodges, Finance Director Summary This is a summary presentation of the proposed 2025 levies for the general fund, debt service, and HRA. We'll also review the budget for the general fund, special revenue funds, enterprise funds, and vehicle maintenance internal service funds. In addition, we'll review the proposed Capital Improvement Program for the next six years. Financial or Budget Considerations The supporting documents and discussion will set the direction for the 2026 budget. The budget will become department's guidance for conducting business and operations for the upcoming year. Legal Considerations The City is legally required to meet various deadlines for the Truth in Taxation process. This discussion will keep us on track to meet the first deadline of September 30 to adopt a proposed levy for 2026. Equity Considerations The proposed budget strives to advance the equity goals of the City by funding infrastructure, programs, and services that provide opportunities and resources for all. Recommended Action Receive a report on the proposed 2026 budget. 24 EXECUTIVE SUMMARY Legal 763-512-2345 / 763-512-2344 (fax) Golden Valley City Council Work Session August 12, 2025 Agenda Item 3. Council Review of Future Draft Agendas Prepared By Melissa Croft, Deputy City Clerk (Records) Supporting Documents Review of Future Draft Agendas 25 Review of Future Draft Agendas Meeting & Item Info August 19, 2025 City Council Meeting - 6:30 PM 1A - Pledge of Allegiance and Land Acknowledgement Presentation New Employee Introductions (if necessary) Consent - Council Minutes Approval of Council Minutes Consent - City Check Registers Approval of City Check Registers Consent - Licenses License - New & Used Vehicle Sales License Renewals Adopt Resolution Approving Gambling Premises Permit for American Legion #523 Chester Bird Post (new location) Approve Liquor License for American Legion #523 Chester Bird Post (new location) Consent - Boards, Commissions, and Task Forces Consent - Bid, Quotes, and Contracts Approve TRPD & City BCRT Cooperative Agreement 1935 Brunswick Easement/Parcel Exhibit Approve Purchase of Site License and Configuration Services for Upgrade to Laserfiche Cloud with OPG-3, Inc. Approve Procurement of Accela and DigEplan to Replace PIMS and ProjectDox Systems via LOGIS Joint Powers Agreement. Approve Contract for Sidewalk Repairs Approve Agreement - Brookview Tennis to Pickleball Repair and Conversion Approve Agreement with Envisio for Project Dashboards Consent - Grants and Donations Consent - Miscellaneous Adopting Resolution Setting A Public Hearing on a ROW Vacation - 4300 Olson Memorial Highway Adopt aá Wakpádaŋ/Bassett Creek Co-Naming Policy, Resolution Public Hearing Old Business New Business September 2, 2025 HRA Meeting - 6:30 PM Consent Agenda Approval of HRA Minutes Adopt HRA Resolution No. 25-XX Rescinding HRA Resolution No. 25-01 Development Agreement for 504 Lilac - Twin Cities Habitat for Humanity Development Agreement for 1131 Lilac - Magnolia Homes Public Hearing Old Business New Business Public Input and Approve Proposed HRA Fund Budget & Levy September 2, 2025 City Council Meeting - 6:30 PM 1A - Pledge of Allegiance and Land Acknowledgement Presentation Proclamation in Support of National Police Women Day - September 12 Consent - Council Minutes Approval of Council Minutes Consent - City Check Registers Approval of City Check Registers Consent - Licenses 26 Meeting & Item Info Consent - Boards, Commissions, and Task Forces Consent - Bid, Quotes, and Contracts Approve Contract for Mighty Tidy Day with Republic Services Brookview Court Renovation Development Agreement for 1131 Lilac - Magnolia Homes Consent - Grants and Donations Consent - Miscellaneous Approve Resolution No. 25-xxx Closing Various Interfund Loans Public Hearing Old Business Consideration of Resolution No. 25-076 Adopting Supplement One to GVPD Policy Manual New Business September 9, 2025 City Council Special Meeting - 5:45 PM (TENTATIVE) Commissioner Interviews (Youth) Discussion Regarding Appointments/Reappointments Adjournment September 9, 2025 HRA Work Session - 6:30 PM (if necessary) September 9, 2025 City Council Work Session - 6:30 PM Overview and Discussion of Data Practices Requests Open Meeting Law Update Prosecution Budget Update Discussion Receiving a Presentation on the City's 2024 Financial Audit Review 2025-2026 General Fund and Preliminary Levy Budget Discussion - Review 2025-2026 Other Funds and 2025-2034 CIP Council Review of Future Draft Agendas September 16, 2025 City Council Meeting - 6:30 PM 1A - Pledge of Allegiance and Land Acknowledgement Presentation Proclamation Honoring September 15 - October 15, 2025 as Hispanic and Latine Heritage Month New Employee Introductions (if necessary) Consent - Council Minutes Approval of Council Minutes Consent - City Check Registers Approval of City Check Registers Consent - Licenses Consent - Boards, Commissions, and Task Forces Board/Commission Appointments (youth) Consent - Bid, Quotes, and Contracts Apadana Solar Agreement for Brookview Consent - Grants and Donations Consent - Miscellaneous Set Date for Proposed Property Tax Levy Payable 2025 and 2025-2025 Budget Adopt Resolution Approving Amended Public Purpose Expenditure Policy Adopt Resolution Approving the Appointment of Election Judges and Establishment of an Absentee Ballot Board Adopt Resolution Approving Pedestrian Crossing Policy Adopt Resolution Approving AI Policy Approve Subdivision of 200 Cutacross - Spencer Addition PCA - ROW Vacation 27 Meeting & Item Info Public Hearing Old Business New Business Receive Public Input and Approve: - Resolution Adopting the Preliminary Budget and Tax Levy; - Resolution Consenting to the Proposed Housing and Redevelopment Levy 28