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HomeMy WebLinkAboutCCWkspAgen_09Aug5Falcon Heights City Council Workshop City Hall 2077 W. Larpenteur Ave Falcon Heights MN 55113 Workshop Agenda August 5, 2009 6:30 p.m. 1. Larpenteur Avenue Streetscape Update 2. 2010 Budget Discussion ???????????????????????????? WKSP 1 8/5/09 TO: Mayor Lindstrom, Council members Harris, Kuettel, Long, and Mercer-Taylor FROM: Justin Miller, City Administrator Re: Larpenteur Avenue Streetscape Update Explanation: For the past two years, the city council, Larpenteur Streetscape Advisory Committee, staff and consultants have been working on draft plans to improve the streetscape along Larpenteur Avenue. Earlier this year it was decided to delay this project until 2010 in order to allow the consultant more time to fully develop plans and meet with stakeholders along the corridor. SRF Consulting, the company hired to perform the design work on this project, is ready to present more detailed plans to the city council at this time. They will be present at the city council workshop to display their latest draft and to answer any questions the council may have. WKSP 2 8/5/09 TO: Mayor Lindstrom, Council members Harris, Kuettel, Long, and Mercer-Taylor FROM: Justin Miller, City Administrator Re: Preliminary 2010 Budget Discussion Explanation: For the past several weeks, staff has been busy preparing their proposed budgets for 2010. A preliminary levy must be set by September 15th, so the city council will formally act on the preliminary budget at the September 9th city council meeting. The purpose of this workshop will be to present the draft budget to the city council and allow staff time to incorporate changes before presenting it for preliminary levy approval in September. Key points of interest for this draft budget include: 1) As we have discussed, 2010 will be an extremely difficult budget year. It is anticipated that we will have roughly $107,000 less in local government aid (LGA) than was budgeted for in 2009. 2) Some important parts of the budget are still unknown, such as our official levy limit (which will be provided by the state by September 1st). Our best estimate is that the levy limit will be $889,091, which is $10,988 (1.25%) over the 2009 property tax levy. 3) Staff’s goal was to keep expenditures as close to a zero increase as possible, with the notable exception of the police contract ($27,000 increase due to the new contract and increased dispatching costs). We have also been more aggressive in allocating salaries to enterprise funds, freeing up roughly $10,000 out of the general fund. In total, proposed expenditures are being reduced from $1,699,786 to $1,685,165. 4) Wages have been frozen at the 2009 levels (as recently amended by the city council). The only exception to this is in the case of an anniversary-related step increase as set forth in our personnel policy. 5) We are projecting a decrease in the amount of non-property tax revenues due to the slower economy and LGA unallottments. In total, the budget includes a decrease of $136,149 in these non-tax revenues. 6) As was discussed at a workshop earlier in the year, this budget assumes that that a streetlight utility will be enacted by the city council effective in 2010. This removes $33,600 from the general fund and will instead be collected on water and utility bills through St. Paul Regional Water Services. Staff will need to know if council is still committed to implementing this fee in order to complete a workable budget. 7) For the first time, the council adopted a special debt service levy in 2009 ($96,129) to pay for the 1999 street bond payments that had traditionally been paid out of capital funds. 2010 is the final year of payments on this bond, and a special levy of approximately $125,000 may be used to preserve money in our capital funds. 8) While the overall levy limit increase for 2010 (as set for in state statute) is .83%, additional special levy authority was approved to allow cities to collect property taxes for unallotted local government aid in 2008 and 2009. The 2008 unalottment was $51,683, and the 2009 unallotment was $46,786. 9) Without implementing any special levies for unallottments, there is a need to transfer $139,172 from other funds to balance the budget. Staff is recommending that any transfer come from the sanitary sewer fund. Impacts to the overall property tax levy There are multiple options available to the city council in regards to the property tax levy: 2009 Overall Property Tax Levy: Regular property tax levy $878,103 Special Levy for Debt $96,129 Total 2009 Levy $974,232 2010 Option 1: Levy maximum amount $889,091 Levy maximum special debt levy $125,000 Option 1 Total Levy $1,014,091 (4.1% increase) 2010 Option 2: Levy maximum amount $889,091 Keep special debt levy equal to 2009 $96,129 Special levy for 2009 unallottment $46,786 Option 2 Total Levy $1,032,006 (5.9% increase) 2010 Option 3: Levy maximum amount $889,091 Keep special debt levy equal to 2009 $96,129 Special levy for 2008 unallottment $51,683 Option 3 Total Levy $1,036,903 (6.4% increase) 2010 Option 4: Levy maximum amount $889,091 Keep special debt levy equal to 2009 $96,129 Special levy for 2008 unallottment $51,683 Special levy for 2009 unallottment $46,786 Option 4 Total Levy $1,083,689 (11.2% increase) These are provided just as potential examples of what the council may decide on. There are multiple other options available (such as varying degrees of special levies). It should be noted that any special levy for unallottments will result in a decrease of the amount of transfer needed from the sanitary sewer fund. Staff will be prepared to answer any questions and take suggestions regarding any changes to the proposed 2010 budget. If major changes are necessary, a revised budget will be presented to the city council at either of the August city council meetings or at the September workshop. If there is consensus among the council, the budget will be presented on September 9th for preliminary levy approval.