09/22/2008 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION 3 August 18, 2008 DRAFT 1 2 Public Services — one new position was originally included and then taken out of the 3 budget. The impact of not having that position is basically response time to public 4 service activities. Upon, Mr. Rolek explained that snow plowing expenses are budgeted 5 (including presumed overtime costs) based on experience and averages. The contract for 6 storm water maintenance has been held level but that is really a bare minimum. The fuel 7 cost budget has been increased based on an estimate. 8 9 Health Care Costs — Staff will probably know by November where health care costs will 10 fall. The proposed twenty percent increase equates to about $8,000 per month. The 11 council expressed an interest in looking ahead and planning for continuing large increases 12 in this area, i.e. self insurance, consortium with League of Minnesota Cities, combination 13 of self insurance and stop -gap for catastrophes. 14 15 Government Buildings — personnel and energy costs are the only areas with an increase. 16 17 Parks — Includes utility costs (watering parks) and contracted services (maintenance and 18 repair of park facilities). Through research, staff has found that the seal coating of trails 19 is not cost effective but there is some on -going maintenance such as crack filling that 20 occurs. 21 22 Recreation — third and final year of the Super Rink payment. Otherwise the programs are 23 self-funded. 24 25 Water and Sewer — funded by fees. Staff does intend to come forward with a proposal to 26 adjust rates (water only) this fall. The rain sensor program is included in the budget for 27 2009. 28 29 On the question of the budget deficit ($72,000), staff is recommending the revision of the 30 levy up to the limit to cover that gap. It preserves the levy limit and preserves fund 31 balance (another option to cover the gap). The council concurred to consider the 32 preliminary budget with the levy limit change as recommended, with the understanding 33 that the $4,100 raised beyond the gap will be designated to the contingency fund. 34 35 The council will be asked to approve a preliminary budget and tax levy on September 8, 36 2008. At that same time, the Truth In Taxation date will be set. There will be an option 37 to make adjustments/have more discussion at the September work session before the 38 council meeting. After the council action, the levy cannot be increased but the 39 preliminary budget can be amended within the limit. 40 41 There was a final suggestion that staff explore the possibility of a request for proposals 42 process for engineering services. 43 44 Finance Officer Rolek and the department directors were offered thanks for their work in 45 putting together a realistic budget for council consideration. 3