HomeMy WebLinkAboutCCWkspAgen_08Oct1City of Falcon Heights 2077 W Larpenteur Avenue Falcon Heights MN 55113 CITY COUNCIL WORKSHOP AGENDA October 1, 2008 6:30 p.m. 1. Senior Services Review 2. Discussion of 2009 Enterprise
Fund Budgets and 2009 General Fund ????????
WKSP 1 10/1/08 TO: Mayor Lindstrom, Council members Harris, Kuettel, Long, and Mercer-Taylor FROM: Justin Miller, City Administrator Re: Senior Services Review Explanation: One of this
year’s city council goals is to continue implementation of an “aging in place” program for our senior citizens. The goal is to allow seniors to stay in their Falcon Heights homes as
long as they wish by helping them access needed services. Over the past several months, staff has been evaluating different options and collecting information on services already provided
in the area. What we have found is that the array of senior services is quite complex and confusing. In order to help the city council understand that services are already being provided,
we have lined up representatives from several organizations to tell us about their services and what they can provide our residents. At our workshop, the following people have agreed
to discuss their programs with the council: • Janell Wampler, Roseville Area Senior Program • Tim Gusk and Debbie Peterson, Northwest Youth and Family Services • Cynthia Hobbie, St.
Anthony Park Block Nurse Program
WKSP 2 10/1/08 TO: Mayor Lindstrom, Council members Harris, Kuettel, Long, and Mercer-Taylor FROM: Justin Miller, City Administrator Re: 2009 Enterprise Fund Budgets 2009 General Fund
Discussion Explanation: The City of Falcon Heights has two enterprise funds. The proposed 2009 budgets and rate structures are discussed below: Sanitary Sewer Rates paid into this fund
pay for our sanitary sewer infrastructure as well as fees we are charged by the Metropolitan Council Environmental Services (MCES) to treat wastewater produced in our city. For 2009,
MCES will be increasing our rates by 4.9%. Staff is recommending that a greater percentage of staff compensation be allocated to this account to better reflect responsibilities and to
ease pressure on the general fund. Further, staff recommends that any scheduled transfer to offset deficits in the 2008 and 2009 general fund budgets come from this fund because of tax-exempt
properties paying sanitary sewer charges, where they do not pay into other funds. The proposed proposed rate for 2009 is $48/quarter, a $1/month increase over the 2008 rate. This will
allow the fund to cover its budgeted expenses for next year. Storm Sewer Rates paid into this fund pay for the storm sewer infrastructure, which conveys our stormwater to area lakes,
rivers and streams. A large increase is being budgeted for our streetsweeping contract because Ramsey County is no longer allowing municipalities free access to their refuse dump site.
In the past, our contractor could take the material picked up by the streetsweepers and dispose of it for free. We will now have to pay for this disposal, which will cost about $500
per load. Staff expects to have seven to ten loads that need to be disposed of. A $1/quarter increase in the proposed rate is being recommended, which will bring the rate to $16.75/quarter.
General Fund Discussion
Due to circumstances outside our control, our 2008 revenues are tracking lower than what was budgeted. Staff’s estimate is that while our expenditures remain at or below budgeted levels,
our revenues will come in about $30,000 under budget (due mainly to lower building permit and fine revenues). To address this, staff has identified unspent budget allocations in the
2008 budget and has agreed to forego spending this money for the rest of the year. A breakdown of these revisions is attached to this report. Staff has also completed a projection of
revenues, expenditures, and needed transfers from reserves through 2012. With the constraints of levy limits, local government aid receipts, and other factors, the result is a continuation
of our budget imbalance, needing transfers from reserves of over $100,000 for years 2010-2012. Staff is also worried about the State of Minnesota’s financial situation, as a $1 billion
deficit is almost certain for the upcoming biennium. In the past the state has addressed this by by taking away LGA, and it would be prudent to begin planning for this contingency. As
we have discussed, continuing to transfer money at these levels from our capital accounts will deplete them, some as soon as 2009. Staff is not comfortable in continuing to do this,
so we have compiled a list of expenditure cuts and new revenues that will help us reduce this amount of needed transfers in coming years. These cuts would impact both internal operations
as well as services that are currently provided to our residents. The revenue sources include some new ways to raise money as well as adjustments to our current fee schedule. In order
to fully eliminate the deficit for 2009, roughly $97,000 in expenditure cuts or revenue enhancements would need to be found. If made permanent, these 2009 cuts would practically eliminate
deficits in the coming years (assuming significant revenue sources such as LGA are not cut). Staff has identified $84,200 in cuts and new revenues (details attached) which begin to address
the deficit. Staff is looking for guidance from the city council on each of these issues as we continue to finalize the 2009 budgets.
Projections Based on Current Revenues and Expenditures CITY OF FALCON HEIGHTS FIVE YEAR BUDGET PROJECTION Inflation Assumptions for General Fund Revenue 4.00% Tax Revenue 3.90% Expenses
4.00% Compensation/Benefits 5.00% 2005 2006 2007 2008 2009 2010 2011 2012 GENERAL FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGETED PROJECTED PROJECTED PROJECTED REVENUE GENERAL PROPERTY
TAX 652,243 684,539 7 14,349 770,000 6 80,601 7 07,144 7 34,723 763,377 FISCAL DISPARITIES 157,727 145,350 1 49,132 176,486 1 97,502 2 05,402 2 13,618 222,163 DELINQUENT TAXES 2,573
3,981 3 ,334 2,500 ----LICENSES & PERMITS 87,396 53,704 7 4,962 54,170 5 4,200 5 6,368 5 8,623 60,968 INTERGOVERNMENTAL REVENUE 300,311 335,299 3 51,642 413,840 5 38,771 5 60,322 5 82,735
606,044 CHARGES FOR SERVICES 77,257 34,874 9 9,621 48,800 4 9,030 5 0,991 5 3,031 55,152 FINES & FORFEITS 70,106 91,966 9 2,681 90,000 9 0,000 9 3,600 9 7,344 101,238 MISCELLANEOUS 57,963
48,002 7 5,448 44,600 4 5,900 4 7,736 4 9,645 51,631 TRANSFER FROM RESERVE 204,315 160,000 4 ,000 38,147 9 7,183 TOTAL REVENUE 1,609,891 1,557,715 1,565,169 1,638,543 1,753,187 1,721,564
1,789,719 1,860,573 EXPENSES EXCL. CAPITAL COSTS LEGISLATIVE 22,914 20,734 2 1,862 23,383 2 3,974 2 4,933 2 5,930 26,967 LEGISLATIVE COMPENSATION/BENEFITS 21,315 21,315 2 1,315 21,315
2 1,315 2 1,315 2 1,315 21,315 ADMINISTRATIVE 50,130 53,112 4 6,038 41,213 4 3,640 4 5,386 4 7,201 49,089 ADMINISTRATIVE COMPENSATION/BENEFITS 145,787 151,076 1 68,245 170,765 1 84,044
1 93,246 2 02,909 213,054 FINANCE 10,238 12,549 1 4,473 17,192 1 8,110 1 8,834 1 9,588 20,371 FINANCE COMPENSATION/BENEFITS 82,388 91,970 9 4,701 102,345 1 07,275 1 12,639 1 18,271 124,184
LEGAL 20,385 18,248 7 ,974 7,500 1 0,500 1 0,920 1 1,357 11,811 ELECTIONS 9 ,165 8,135 8 ,605 11,319 9 ,934 1 0,331 1 0,745 11,174 COMMUNICATIONS 32,670 39,603 4 0,301 38,605 4 3,950
4 5,708 4 7,536 49,438 COMMUNICATIONS COMPENSATION/BENEFITS 11,137 16,072 1 8,595 20,820 2 1,454 2 2,527 2 3,653 24,836 PLANNING & INSPECTIONS 45,483 51,411 5 2,523 41,750 4 8,100 5
0,024 5 2,025 54,106 PLANNING & INSPECTIONS COMPENSATION/BENEFITS 46,922 54,373 6 0,169 62,929 6 8,676 7 2,110 7 5,715 79,501 EMERGENCY PREPAREDNESS 2 ,284 1,092 1 ,450 1,860 1 ,235
1 ,284 1 ,336 1,389 EMERGENCY PREPAREDNESS COMPENSATION/BENEFITS 3 ,079 2,467 2 ,926 3,083 3 ,326 3 ,492 3 ,667 3,850 POLICE 468,650 482,191 5 07,595 537,100 5 66,250 5 88,900 6 12,456
636,954 PROSECUTION 34,410 31,926 3 2,583 33,000 3 4,000 3 5,000 3 5,500 35,500 FIRE SERVICES 54,531 60,385 5 4,033 55,791 6 6,241 6 8,891 7 1,646 74,512 FIRE SERVICES COMPENSATION/BENEFITS
40,773 34,326 3 9,125 39,716 4 8,306 4 6,500 4 8,000 49,500 FIRE RELIEF 57,147 57,576 4 8,687 55,000 5 5,000 5 7,200 5 9,488 61,868 CITY HALL & GROUNDS 34,564 40,707 4 2,391 29,000 4
8,580 5 0,523 5 2,544 54,646 CITY HALL & GROUNDS COMPENSATION/BENEFITS 21,560 20,894 2 5,674 45,427 3 1,014 3 2,565 3 4,193 35,903 STREETS 74,612 56,444 7 0,753 83,139 8 6,520 8 9,981
9 3,580 97,323 STREETS COMPENSATION/BENEFITS 35,935 34,529 4 0,309 43,967 4 6,397 4 8,717 5 1,153 53,710 ENGINEERING 8 ,223 7,622 8 ,144 6,000 9 ,000 9 ,360 9 ,734 10,124 TREE PROGRAM
56,284 40,661 1 4,281 10,717 1 1,957 1 2,435 1 2,933 13,450 PARK MAINTENANCE & ADMINISTRATION 45,811 61,906 5 9,103 69,585 6 7,425 7 0,122 7 2,927 75,844 PARK MAINTENANCE & ADMINISTRATION
COMPENSATION/BENEFITS 79,748 80,507 5 5,506 66,279 6 6,965 7 0,313 7 3,829 77,520 CONTINGENCY 5 ,806 11,895 --1 0,000 1 0,000 1 0,000 10,000 TOTAL EXPENSES 1,521,951 1 ,563,726 1,557,361
1 ,638,800 1,753,188 1,823,256 1,899,230 1,977,940 TRANSFER NEEDED TO BREAK EVEN ( 101,693) ( 109,511) (117,367) DRAFT 9/26/2008
Projections Based on Proposed Expenditure Cuts and New Revenues CITY OF FALCON HEIGHTS FIVE YEAR BUDGET PROJECTION Inflation Assumptions for General Fund Revenue 4.00% Tax Revenue 3.90%
Expenses 4.00% Compensation/Benefits 5.00% 2005 2006 2007 2008 2009 2010 2011 2012 GENERAL FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGETED PROJECTED PROJECTED PROJECTED REVENUE GENERAL
PROPERTY TAX 652,243 684,539 7 14,349 770,000 6 80,601 7 07,144 7 34,723 763,377 FISCAL DISPARITIES 157,727 145,350 1 49,132 176,486 1 97,502 2 05,402 2 13,618 222,163 DELINQUENT TAXES
2,573 3,981 3 ,334 2,500 ----LICENSES & PERMITS 87,396 53,704 7 4,962 54,170 5 5,750 5 7,980 6 0,299 62,711 INTERGOVERNMENTAL REVENUE 300,311 335,299 3 51,642 413,840 5 38,771 5 60,322
5 82,735 606,044 CHARGES FOR SERVICES 77,257 34,874 9 9,621 48,800 5 0,530 5 2,551 5 4,653 56,839 FINES & FORFEITS 70,106 91,966 9 2,681 90,000 104,300 1 08,472 1 12,811 117,323 MISCELLANEOUS
57,963 48,002 7 5,448 44,600 4 5,900 4 7,736 4 9,645 51,631 TRANSFER FROM RESERVE 204,315 160,000 4 ,000 38,147 9 7,183 TOTAL REVENUE 1,609,891 1,557,715 1,565,169 1,638,543 1,770,537
1,739,608 1,808,485 1,880,089 EXPENSES EXCL. CAPITAL COSTS LEGISLATIVE 22,914 20,734 2 1,862 23,383 1 8,474 1 9,213 1 9,981 20,781 LEGISLATIVE COMPENSATION/BENEFITS 21,315 21,315 2 1,315
21,315 2 1,315 2 1,315 2 1,315 21,315 ADMINISTRATIVE 50,130 53,112 4 6,038 41,213 3 3,340 3 4,674 3 6,061 37,503 ADMINISTRATIVE COMPENSATION/BENEFITS 145,787 151,076 1 68,245 170,765
1 69,044 1 77,496 1 86,371 195,690 FINANCE 10,238 12,549 1 4,473 17,192 1 6,260 1 6,910 1 7,587 18,290 FINANCE COMPENSATION/BENEFITS 82,388 91,970 9 4,701 102,345 1 07,275 1 12,639 1
18,271 124,184 LEGAL 20,385 18,248 7 ,974 7,500 8 ,000 8 ,320 8 ,653 8,999 ELECTIONS 9 ,165 8,135 8 ,605 11,319 9 ,934 1 0,331 1 0,745 11,174 COMMUNICATIONS 32,670 39,603 4 0,301 38,605
4 1,050 4 2,692 4 4,400 46,176 COMMUNICATIONS COMPENSATION/BENEFITS 11,137 16,072 1 8,595 20,820 2 1,454 2 2,527 2 3,653 24,836 PLANNING & INSPECTIONS 45,483 51,411 5 2,523 41,750 4
4,100 4 5,864 4 7,699 49,607 PLANNING & INSPECTIONS COMPENSATION/BENEFITS 46,922 54,373 6 0,169 62,929 6 8,676 7 2,110 7 5,715 79,501 EMERGENCY PREPAREDNESS 2 ,284 1,092 1 ,450 1,860
1 ,235 1 ,284 1 ,336 1,389 EMERGENCY PREPAREDNESS COMPENSATION/BENEFITS 3 ,079 2,467 2 ,926 3,083 3 ,326 3 ,492 3 ,667 3,850 POLICE 468,650 482,191 5 07,595 537,100 5 66,250 5 88,900
6 12,456 636,954 PROSECUTION 34,410 31,926 3 2,583 33,000 3 4,000 3 5,000 3 5,500 35,500 FIRE SERVICES 54,531 60,385 5 4,033 55,791 6 6,241 6 8,891 7 1,646 74,512 FIRE SERVICES COMPENSATION/BENEFITS
40,773 34,326 3 9,125 39,716 4 8,306 4 6,500 4 8,000 49,500 FIRE RELIEF 57,147 57,576 4 8,687 55,000 5 5,000 5 7,200 5 9,488 61,868 CITY HALL & GROUNDS 34,564 40,707 4 2,391 29,000 4
8,580 5 0,523 5 2,544 54,646 CITY HALL & GROUNDS COMPENSATION/BENEFITS 21,560 20,894 2 5,674 45,427 3 1,014 3 2,565 3 4,193 35,903 STREETS 74,612 56,444 7 0,753 83,139 8 6,520 8 9,981
9 3,580 97,323 STREETS COMPENSATION/BENEFITS 35,935 34,529 4 0,309 43,967 3 4,397 3 6,117 3 7,923 39,819 ENGINEERING 8 ,223 7,622 8 ,144 6,000 9 ,000 9 ,360 9 ,734 10,124 TREE PROGRAM
56,284 40,661 1 4,281 10,717 1 1,757 1 2,227 1 2,716 13,225 PARK MAINTENANCE & ADMINISTRATION 45,811 61,906 5 9,103 69,585 6 4,825 6 7,418 7 0,115 72,919 PARK MAINTENANCE & ADMINISTRATION
COMPENSATION/BENEFITS 79,748 80,507 5 5,506 66,279 6 6,965 7 0,313 7 3,829 77,520 CONTINGENCY 5 ,806 11,895 --TOTAL EXPENSES 1,521,951 1 ,563,726 1,557,361 1 ,638,800 1,686,338 1,753,862
1,827,177 1,903,107 TRANSFER NEEDED TO BREAK EVEN ( 14,255) ( 18,692) (23,018) DRAFT 9/26/2008
2008 Budget Revisions Target = $30,000 Budget Item Savings Impact Eliminate Winter Newsletter $ 1 ,100 Move recycling calendar to Falcon Flyer, less publicity of park and rec events
Consultant Planner $ 2 ,000 Administrative Supplies $ 2 ,500 Postpone purchases until 2009 Park and Rec Training $ 4 00 Legislative Training $ 1 ,000 Boulevard Maintenance $ 1 ,300 Majority
of work already completed Engineering $ 2 ,000 Website $ 1 ,000 Will not change pictures from basic template Administrative Consultant $ 5 00 Administrative Training $ 5 00 GIS $ 2 ,000
Finance Supplies $ 6 00 Will need to collect and re-use CAFR and budget materials Fire Training $ 2 ,500 Planning Training $ 1 ,000 Fire Supplies $ 5 00 Fire Cleaning $ 5 00 Hazmat Materials
$ 5 00 Contingent on incidents Fire Officer Compensation $ 1 ,500 Fewer officers this year need payment Contingency $ 1 0,000 No planned resignations; funds budgeted to payout vacation
and sick leave Total $ 3 1,400 DRAFT 9/26/2008
2009 Budget Revisions Target = $97,000 Budget Item Savings Impact Housing Resource Center Contribution $ 5 ,000 Residents lose access to programs available Reduce number of newsletters
from 3 to 2 $ 1 ,100 Less publicity of park and recreation events, city news Webcasting of city meetings $ 1 ,800 Only playback will be on television Remove water coolers from city hall
$ 8 00 Eliminate city hall janitor services $ 5 ,000 Cleaning will be responsibility of staff Consultant Planner $ 2 ,000 ICMA/GFOA conference (Miller/Olson) $ 3 ,000 Money intended
for national conferences Contingency $ 1 0,000 Any unplanned resignations will result in payouts of vacation elsewhere in budget Legal $ 2 ,500 Will need to be more judicious in use
of attorneys Leave office assistant postion unfilled $ 1 5,000 Supplies $ 3 ,000 Finance consultant $ 3 50 Reallocate compensation to sanitary sewer fund $ 1 2,000 Allocate public works,
administrator salary based on duties involved Reallocate compensation to recycling fund $ 2 ,000 Allocate planning administrator salary based on duties involved Allocate portion of PW
salary as TIF expense TBD As allowed by statute, charge personnel time to TIF account on qualified projects Grove Park Warming House $ 2 ,000 Will still flood rink, but no warming house
will be rented, fewer attendant wages Legislative training/conferences $ 5 00 Reduce Community Park phone lines $ 6 00 Outdoor 911 phone will stay active, inside phone line cancelled
Tree program training $ 2 00 New Revenue Sources Amount Increase false alarm fees from $35 to $60 $ 9 00 First alarm free, second call $60, subsequent calls $75 Bill accident victims
for fire dept. cleanups $ 8 ,400 $350 charge per accident (billed to insurance), average two per month Increase uniform parking fine $ 5 ,000 Increase charge from $25 to $35, average
of 500 tickets per year Increase room rentals by 10% $ 7 00 Charge non-profits annual fee for room usage $ 5 00 Clubs such as Girls Scout, Cub Scouts, book club, Lions, Falconeers would
be charged $100 for annual usage Recreation class cancellation fee $ 3 00 $3 charge if participant drops out of program Increase mechanical/plumbing permit fees $ 1 ,200 Increase base
fee from $25 to $30, increase other fees by $5 Increase contractor license fees $ 2 50 Increase from $30 to $35 Increase variance fees $ 1 00 Increase from $100 to $150 Total $ 8 4,200
DRAFT 9/26/2008