HomeMy WebLinkAbout08-19-2020 Council Special Work SessionSPECIAL WORK SESSION AGENDA
CITY OF LINO LAKES
Wednesday, August 19, 2020
CITY COUNCIL WORK SESSION
Council Chambers (not televised)
6:00 p.m.
1. 2021 Budget
2. Adjourn
WS – Item 1
WORK SESSION STAFF REPORT
Special Work Session Item No. 1
Date: August 19, 2020
To: Mayor and City Council
From: Sarah Cotton, City Administrator
Re: 2021 Budget
Background
At the July 27th Budget Work Session, City Council directed staff to reduce the Budget
Gap by $410,865 (half of the current $821,730), in addition to further reducing the Gap to
Maintain a Flat Tax Capacity Rate of 39.870%. Based on the direction received, staff is
proposing the following amendments to the Proposed 2021 Budget:
Reducing the Budget Gap by $410,865
Staff has identified that following 2021 Budget requests are eligible for CARES Act
Funding:
$1,150.00 N-95 Masks/Fit Testing
$1,150.00 N-95 Masks/Fit Testing
$4,000.00 (1) Toughbook Computer
$4,400.00 (3) Replace Desktop Computers
$14,700.00 AEDs (7) Police Division
$27,206.00 LiveScan Fingerprinting Machine
$4,200.00 AEDs (2) Fire Division
$32,000.00 Cardiac Monitor
$48,000.00 800 MHz Portable Radios (12)
$4,000.00 (1) Toughbook Computer
Total Expenditures Eligible for CARES Act Funding - $140,806
Based on Council direction, staff is recommending that the Capital Outlay Request for the
Gator Tail Boat (Fire Division) be considered as part of the Council’s discussion on 2021
Capital Equipment Replacement and funded through the issuance of Capital Equipment
Certificates, if desired.
Total Expenditures Considered as part of Capital Equipment Replacement - $39,000
Based on Council direction, staff is recommending that the expenditure related to
Balancing the Air Handling Units throughout the Civic Complex be moved to the Bldg &
Facilities Fund.
Total Expenditures Reprogrammed to Bldg & Facilities Fund – $24,000
Based on Council direction, staff is recommending that the annual increase in Pavement
Management Funding be reduced from 10% to 5% over prior year.
Total Reduction in Increase to Pavement Management Funding - $33,075
Based on Council direction, staff is recommending that Recreation Programming and
Special Events be suspended. This suspension would be inclusive of all programs detailed
on Page 105 of the Budget Book and Blue Heron Days.
$47,647.00 Addition of PT Recreation Coordinator
$11,500.00 Summer Playground Program
$10,000.00 Blue Heron Days
Total Reduction in Recreation Programming and Special Events – $69,147
Based on Council direction, staff is recommending a temporary suspension of the annual
$90,000 contribution to the Park & Trail Improvement Fund. In addition, un-committing
$375,000 of General Fund Reserves and transferring these reserves to the Park & Trail
Improvement Fund would allow the following 2021 Parks Budget requests to be funded
through the Park & Trail Improvement Fund:
$7,000.00 Wenzel Farms Boardwalk Replacement
$5,000.00 Engineering for Park & Trail Projects
$54,000.00 Additional Trail Repairs/Replacement, Sunrise Park Rink Lights
Replacement, Removal of Marshan Boardwalk
Total General Fund Budget Impact of Park & Trail Amendments - $156,000
The total budget impact of the above modifications is $462,028 and meets the Council’s
directive of decreasing the Budget Gap by $410,865. Staff is prepared to discuss these
actions with the Council in detail at the August 19th Budget Work Session.
Further Reducing the Gap to Maintain a Flat Tax Capacity Rate of 39.870%
In addition to the modifications outlined above, the adjustments outlined below would be
needed to further reduce the gap with a goal of maintaining a flat Tax Capacity Rate of
39.870%.
Based on Council direction, staff is recommending removing the following Public Services
requests from the proposed 2021 budget:
$78,205.00 Addition of General Maintenance Worker
$5,000.00 Median Landscaping Maintenance - Lake Dr
$380.00 Uniform for Additional General Maintenance Worker
$19,000.00 Street Light Replacement - Rice Lake Estates
$17,500.00 Trailer Mounted Message Sign
$4,500.00 Purchase Asphalt Saw (Minor Trail Repairs)
The service level impacts of these amendments are highlighted throughout the Budget
Book and should be considered by the Council when evaluating the suggested
modifications.
Total General Fund Budget Impact of Public Services Amendments - $124,585
The Public Safety Department request for additional staff in the Police Division is rooted
in what is needed to provide public safety services in a safe and efficient manner. Staff
has conducted extensive research on police staffing and continues to provide the highest
level of service possible with the current resources.
As noted in the original request, the number of sworn police staff in 2020 is the same as
the staffing level of 2010 (27).The number of calls for police service in 2010 were 6,398
and in 2019 there were 9,189 calls for police service, which is a 44% increase of during
that time period.
As noted by some of our community members during the Council meeting on July 27,
2020, our community members have had to wait for police response to their calls for
service. Staff reviewed all police calls for service for the month of July 2020 and
determined that there were 58 calls for police service that were not immediately
responded to because no police staff was available to respond to the call for service
because police resources were tied up on other police calls. The total amount of time for
these 58 occurrences that community members waited for a police response was 12 hours
38 minutes and 38 seconds.
Staff also reviewed all police calls for service from August 1, 2020 through 0700 hours
on August 13, 2020 and determined that there were 12 calls for police service that were
not immediately responded to because no police staff was available to respond to the call
for service because police resources were tied up on other police calls. The total amount
of time for these 12 occurrences that community members waited for a police response
was 2 hours 49 minutes and 10 seconds.
Given the feedback from Council at the July 27th Council Budget Work Session and the
budget gap, Public Safety is amending the Police Division personnel request for the 2021
budget to reflect adding one police officer position in September of 2021 and adding an
Investigative Assistant position in April 2021. If approved as amended the total increase
in Police Division personnel costs for 2021 will be $94,107. This would be a reduction
of $198,347 from the original budget request.
It must be noted that this change does not address the staffing needs for police services
and staff anticipates seeking additional police staffing in future budgeting processes to
address the police staffing shortage. It should also be noted that the police personnel
requests in the 2021 budgeting process as well as all budgeting processes dating back to
2012 are based on policing needs and not budgeting strategies.
Total General Fund Budget Impact of Public Safety Personnel Amendments - $198,347
Finally, the Council expressed a desire to use caution regarding any personnel additions in
2021, given the pandemic environment and the current level of uncertainty. Therefore, staff
is recommending to delay the addition of the PT Communications Coordinator position to
2021.
Total General Fund Budget Impact of Delaying Addition of PT Communications
Coordinator Position to 2021 - $20,405
The total budget impact of the above modifications is an additional $343,337, and a grand
total of $805,365. While this doesn’t quite meet the Council’s directive of reducing the
gap by $821,730 and to a Tax Capacity Rate of 39.870%, it does get the City to a gap of
$16,365 and an estimated Tax Capacity Rate of 39.941%.
Prior to making any additional budget modifications, staff is recommending that Pay 2021
Taxable Market Value information be updated. The first draft of the Proposed 2021 Budget
was based on preliminary estimated market values obtained from Anoka County. To-date,
staff has not received any additional information from the County.
Staff is prepared to discuss these actions with the Council in detail at the August 19th
Budget Work Session.
Finally, while the following amendments would not have an impact on the city’s General
Fund Budget or Tax Levy, based on Council direction, staff is recommending removal of
the following budget requests:
$77,005.00 Addition of General Maintenance Worker (Utilities)
$61,770.00 Additional Vehicle for General Maintenance Worker (Utilities)
$15,000.00 Push Camera (Sewer Capital Outlay)
Attachments
2021 General Fund Gap Analysis
7/27/2020 8/19/2020
Adopted Proposed Proposed %
2020 2021 2021 Change Change
Tax Levies
Operating Levy 8,368,756 9,907,192 9,101,827 733,071 8.76%
Debt Levy 2,122,762 1,909,448 1,909,448 (213,314) -10.05%
Total Tax Levy 10,491,518 11,816,640 11,011,275 519,757 4.95%
Year-over-Year Change Levy $1,325,122 519,757 4.95%
Drill-Down on Year-Over-Year Levy Changes 7/27/2020 8/19/2020
Adopted Proposed Proposed %
2020 2021 2021 Change Change
Revenues
Property Taxes (Delinquent, Penalties/Interest)39,000 39,000 39,000 - 0.00%
Intergovt Revenue 616,459 631,569 631,569 15,110 2.45%
Business Licenses/Permits 144,233 143,959 143,959 (274) -0.19%
Non-Business Licenses/Permits 788,113 799,060 799,060 10,947 1.39%
Charges for Services 27,538 31,183 31,183 3,645 13.24%
Public Safety Service Charges 190,800 190,800 190,800 - 0.00%
Municipal Fines 116,100 106,100 106,100 (10,000) -8.61%
Miscellaneous 324,171 323,576 323,576 (595) -0.18%
Trf from Closed Bond Fund 380,000 - - (380,000) -100.00%
Trf from CableTV/Communications Fund - 40,000 - - ***
Use of Reserves 200,000 - - (200,000) -100.00%
Total Revenues/Funding Sources 2,826,414 2,305,247 2,265,247 (561,167) -19.85%
Expenditures
Personal Services 7,605,738 8,126,189 7,741,585 135,847 1.79%
Supplies 477,825 513,530 494,730 16,905 3.54%
Other Services and Charnges 1,344,407 1,476,228 1,446,848 102,441 7.62%
Contracted Services 722,084 821,636 748,636 26,552 3.68%
Capital Outlay 42,117 205,706 10,700 (31,417) -74.59%
Others 1,003,000 1,069,150 924,575 (78,425) -7.82%
Total Expenditures 11,195,170 12,212,439 11,367,074 171,903 1.54%
Debt Service
Bonds 1,549,975 1,557,162 1,557,162 7,187 0.46%
Certificates of Indebtedness 572,788 352,286 352,286 (220,502) -38.50%
Total Debt Service 2,122,762 1,909,448 1,909,448 (213,314) -10.05%
1
Year-over-Year Change Levy $1,325,122 519,757
Total Levy Supported by Valuation Increase ($10,994,910)503,392 503,392
Gap to Maintain Flat Tax Capacity Rate 821,730 16,365
Tax Capacity Rate 39.870% 43.352% 39.941%
GENERAL FUND FORECAST GAP ANALYSIS
2020-2021