HomeMy WebLinkAbout2007-161 Council Resolution•
Council Member: Carlson introduced the following resolution and
moved its adoption:
CITY OF LINO LAKES
COUNTY OF ANOKA
RESOLUTION NO. 07 -161
APPROVING THE 2008 OPERATING BUDGET OF THE VADNAIS LAKE
AREA WATER MANAGEMENT ORGANIZATION
WHEREAS, the board of the Vadnais Lake Area Water Management
Organization has prepared and submitted its 2008 Operating Budget for approval
by members,
WHEREAS, the City of Lino Lakes is obligated to fund a portion of the annual
operating budget through a joint powers agreement.
Now, Therefore, Be it Resolved by the City Council of the City of Lino Lakes:
That the City Council approves the 2008 VLAWMO Operating Budget and agrees
to provide $13,371 as its share of the budget.
e Bartell, City ler
Adopted by the Lino Lakes City Council this 24tlday ofsept , 2007.
The motion for the adoption of the foregoing resolution was duly seconded by
Council Member O'Donnell and upon vote being taken thereon, the following
voted in favor thereof:
Carlson, O'Donnell, Reinert, Stoltz, Bergeson
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
•
•
•
STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
AGENDA ITEM 3 A ii
Gordon Heitke
September 24, 2007
Consider Resolution No. 07 -161, Approving the 2008
Vadnais Lake Area Water Management Organization
Operating Budget
VOTE REQUIRED: 3/5
BACKGROUND
Each year the board of the Vadnais Lake Area Water Management Organization
(VLAWMO) prepares and submits its annual operating budget to the member
governing bodies for approval. The City of Lino Lakes' share of the 2008 VLAWMO
budget is $13,371 for administration, programs and projects, and capital improvement
project costs, as compared to $8,687 in 2007. The proposed 2008 VLAWMO budget
costs for Lino Lakes is included in the City's adopted 2008 preliminary budget. A
detailed budget with accompanying information is attached.
RECOMMENDATION
Staff recommends adoption of Resolution No. 07 -161
•
•
2008 Draft VLAWMO budget highlights
The spreadsheet with the draft 2008 budget has 3 worksheets: one shows the Operations
budget with NO CIP; the second sheet "CIP Draft 08 budget" has a modest CIP budget of
$115,000 and the last sheet shows the operations & CIP budget in pie chart format with
percentages. Different sections of the budget are color coded.
♦ The draft 2008 shows a DECREASE from the 2007 budget: $430,305 ('07) -
$380,000 ('08) = $50,305 or 12% (decrease). Most of the decrease is in the CIP
budget: $51,305. The Operations budget is almost the same: $1000 more then this
year.
♦ While the 2008 budget actually spends less than the 2007, substantially more funding
support is coming from local sources, whether member contributions, stormwater
utility fees or a CIP levy. In 2007 $196,305 came from grant funding or
VLAWMO reserves. This breaks out as $66,305 (Clean Water Partnership grant);
$30,000 (reserves earmarked for completing the updated hydraulic model of the
watershed) and another $1 00,000 (CWP funding still to be received).
Expenses
♦ See Footnotes for those line items that either stayed the same or increased or
decreased slightly.
• Restore reserves ($5000) — this is the Water Plan contingency approved this year (to
be spent in 2007 from reserves). VLAWMO has roughly $30,000 in reserves. Our
auditor several years ago recommended reserves sufficient to cover 1/3 to '/2 of our
annual budget. This reserve level was fine in 2005 when the VLAWMO budget
was $85,000. If the funding mechanism for the watershed moves to a Storm Water
Utility (SWU) we should have half a years operating expenses — at least — in
reserve. VLAWMO anticipates building its reserve fund over 2 — 3 years to an
appropriate level.
o $265,000 proposed 2008 operating budget
o $133,000 half year operating budget (recommended reserves)
o $380,000 — total proposed 2008 budget w/ $115,000 CIP
o $391,933 funding generated under preliminary SWU feasibility at $1 / mo/
single family residential unit with standard exempt parcels but no credits.
o Reserve restoration: $12,000 (SWU) + $5,000 (restoring used reserves) +
$25,000 (existing) = $42,000 — would be the new reserves available (still
about $91,000 short of the recommended.
♦ Programs and non -CIP Projects. The Sustainable Lake Management Plan, Cost -
share program and monitoring and analysis program have stayed the same in 2008.
Facilities maintenance increased by 3 %. A $3,000 SWU update fee was included
this year to have a consultant help us update the SWU file. This could possibly be
done by in -house staff. We will have a better idea when the feasibility study is
complete.
• Capital Improvement Program. The 2008 funds three items identified in the draft
Water Plan. FUNDING THIS LOCALLY IS NEW.
June 11, 2007
•
•
•
o Whitaker pond restoration / stabilization ($50,000). This is project
that had to be dropped from the 2007 work schedule because of funding.
Preliminary estimated costs are $70,000 with the remainder of this project
to be funded either in the 2009 budget or from the local government
partners: Ramsey County, White Bear Lake, and White Bear Township.
Most likely the first part of the project would be done in the winter of
2008 -2009 with the shoreline stabilization being completed in the spring
of 2009.
o Goose Lake - $50,000. Goose Lake is the headwaters of Lambert Creek,
the focus of our Clean Water Partnership work over the last 15 years. The
water ski club is actively using Little Goose all summer and is very
interested in the health and swimability of the lake. This year's budget
funds a feasibility study for Goose Lake: sediment analysis, chemistry &
nutrient loading /cycling analysis, possibly a fish and / or macro
invertebrate inventory and development of best management options.
Implementation of those options may cost $250,000.
o SLMP Implementation. A comment received from several agencies was
that funding for the implementation of the practices recommended by the
Sustainable Lake Management Plans should be moved up to immediately
follow on the completion of the lake plans — while people are still excited
about working on their lake. The first lake plan is in 2007.
Implementation funding would start in 2008 and could include in lake
treatments, fish surveys or targeted stormwater nutrient loading reduction
BMP's.
Income
♦ Minor income remains the same with the exception of some additional interest
income from CD's.
• The 2008 budget assumes the implementation of the SWU. There is another
column labeled: `Jan- June assistance.' If the SWU becomes the new funding
mechanism for the watershed, VLAWMO's first income would be mid -year in
2008. As discussed earlier, VLAWMO reserves funds are inadequate to fund the
first half of the year. (Under the contribution formula VLAWMO receives the first
half of its income in January or February.) Would the communities be willing to be
the `banker' for the first $190,000 (1/2 of the 2008 Budget)? This funding could be
returned over the next year as the watershed moves into it's new funding cycle. If
this loan is spread out using the funding formula the first half help amount from
each community is the Jan-June assistance column. If this does not happen the
contribution from members based on the JPA formula follows immediately.
Community contributions with and without the CIP budget are included for your
information in the bottom spreadsheet.
June 11, 2007
2008 OPERATING BUDGET - VLAWMO
'EXPENSES
6'f Administrative/ Managerial
2007
2008
toot -
notes
6.1.1
6.1.1.1
6.1.1.2
Day to day operations
Office
Information systems
rent, copies, post. tel, supplies
Website maintenance & upgrade
$10,000
$3,000
$10,000
$3,000
Computer system development
$5,000
$5,000
6.1.1.3
6.1.1 4
6.1.1.5
6.1.1.6
6.1.2
Insurance
Financial audit
Bookkeeping / office
Legal
Engineering (9 hr /mo @ $130)
Technical /scientist
Administration
$3.200
$3.900
$500
$1,500
512,000
$10.000
$3,300
84,500
$1,740
$2.000
$14,000
$12,000
1
2
3
4
5
6
7
8
9
6.1.2.1
6.1.2.2
6.1.2.3
6.1.3
6.1.4
6.2
Administrator
summer intern
Project Coordinator
Training (staff /Board)
Misc & Cont.
Local Plan Development
Technical Assist /Cost Sher( Local Plan development
Restore reserves from Water Plan development
$70,000
S7,000
$55,000
$1,400
$10,000
S5,000
$74,460
87,700
$55, 000
$1,500
88,500
$10,000
65,000
10
11
12
13
14
15
16
Program & Project Funds
6.3
6.3.3
Studies and Programs
Sustainable Lake Management Plans (SLMP)
$7,500
$7,500
6.3.4
6.3.5
6.3.6
Financial Incentives
Public Education
Facilities Operations
Lambert.Lake (3 hr /mo @S50)
Grass & Rice Lks (1 hr /mo)
Whitaker weir & pond
82,000
$1,000
$7,000
$5,000
$5,000
S2,000
$1,000
$7,000
$5,000
812,000
$10,300
17
'18
19
20
6.3.8
6.3.8.1
Data Analysis and Monitoring
Citizen's Lake Monitoring
$1,500
$1,500
$'1,500
6.3.8.2
6.3.8.3
6.3.8.4
6.3.8.5
6.4
Ramsey Co lab work & bid assess
Lambert Cr. Data collection- equip
Storm Water Utility update
Watershed Modeling
$8,500
$2 500
(funded from 2004 -'05 budgets)
$5,000
$2,500
$0
$30,00it
$5,500
52,500
$3,000
$0
Operations budget Subtotal $264,000 $265,000
Capital Improvement Projects
21
22
23
24
6.4.1
Lambert Lake restoration
$40,000
6.4.2
Lower Lambert stabilization
$50,000
6.4.3
Whitaker Pond improvement/stabilization
$50,000
6.4.4
Lambert Creek flume & monitoring
$76,305
6.4.5
Additional water quality improvements
6.4.6
Goose Lake - study & implementation
$50,000
6.4.9
SLMP Implementation
$0
$15,000
Sub -Total CIP Expenses $166,305 $115,000
Total
1 $430,3051 $380,0001
•
G° r-
•
6.5.1
INCOME
Fees for review service
6.5.2
Interest
6.5.3
Miscellanous WCA sub grant & other grants
6.5.4
Member Contributions*
6.5.5.1
Other funding sources: Stormwater Utility
6.5.5.2
Other funding sources:
CIP Levy (103B.251)
6.5.6
Transfer from reserves
(CWP $66,305; model $30K)
2004 tax value
% based
on 40 -40- Assessable
20 budget
$72,223,600
Gem Lake
2.86
$43,278,300
Lino Lakes
3.58
$898,966,100
North Oaks
28.9
$828,693,400
Vadnais Heights
27.63
$828,082,200
White Bear Lake
24.12
$415,279,400
White Bear Twn
12.91
$3,086,523,000
100
fe
73,500'
73,500
73,500
3.500
07,942
8
,088
2007 - 2008 decrease:
% decrease:
•
•
$50,305
12%
2007 D-
2;
5500
$228,000
26
27
28
96, 305
.43
Operations
budget
$265,000
$265,000
$265,000
$265,000
$265,000
$265,000
Contribution
NO CIP
$7,579
$9,487
$76,585
$73,220
$63,918
$34,212
$265,000
Jan -Jun
assistance
Operations increase:
CIP decrease:
$5,434
$6,802
$54,910
$52,497
$45,828
$24,529
$190,000
$1,000
$51,305
•
•
•
Footnotes for the 2008 VLAWMO Budget
1. 6.1.1 - $10,000. This was left the same as 2007. This includes rent which will be
increasing from $200 to $300 in '08. This increases the rent total by $1200,
however some of the office upgrades (equipment for new staff) will be in place.
Also included are copies, postage, supplies and interne.
2. 6.1.1.2 - $3000. Information systems — Website. This pays a monthly
maintenance fee and has additional funds to do an update with the webmaster.
3. 6.1.1.2 - $5000. Information systems. This has been kept the same as 2007 as
well. It includes hardware, software and maintenance.
4. 6.1.1.3 - $3300. Insurance. This is $100 higher than last year. It was increased
in 2007 to accommodate additional workers compensation insurance. We are
adding a renter's type insurance to cover the electronic equipment up to $10,000
and the canoe.
5. 6.1.1.4 - $4500. Audit. This was increased from $3900 to $4500 to accommodate
additional federal reporting requirements.
6. 6.1.1.4 $1200 Bookkeeping. This was increased to $1740. A bookkeeper
familiar with Quick Books has been hired to produce the monthly checks,
Treasurer's report and reconcile the bank statements. She is starting this month.
Right now we are estimating 3 hours / month at $35 / hour. The other
bookkeeping expense, payroll processing done by the City of White Bear Lake for
just under $45 / mo. has been shifted from the Administration budget to
bookkeeping where it belongs.
7. 6.1.1.5 $2000 Legal Increased from $1500 to $2000. While the JPA questions
will hopefully be behind us by next year, more projects will generate more
questions. This item may change if the Board feels there would be a cost
efficiency in having the VLAWMO attorney attend Board meetings.
8. 6.1.1.6 $14,000 Engineering. Both budget items were increased $2000 to
provide specialized support for VLAWMO programs. Engineering: 9 hrs /mo @
$130 / hr. It provides drainage & erosion control reviews on development or
VLAWMO projects & other engineering assistance.
9. 6.1.1.6 $12,000 Technical. This is increase $2000 over 2007. This can support
implementation of SLMP program. $3000 of the Technical help budget is going
to Ramsey Conservation District this year to provide design assistance for
restoration projects and a Raingarden workshop in July.
10. 6.1.2.1 $74,460 Administrator — This has gone up because an average health
insurance employer premium has been added for the first time ($4,300). There is
a 1% cost of living increase.
11. 6.1.2.2 $7,700 summer intern. This element has not been increased since it
began two years ago and includes a $1/hour increase
12. 6.1.2.3 $55,000 Program Coordinator. While this line item remains the same
in 2008, it still allows for up to a 5.5% salary increase for the new position.
13. 6.1.3 $1500 Training. This is a $100 increase over 2007 or 7 %. This budget
increased in 2007 to train the new staff. The 2008 increase acknowledges
consumer price index increases which has not been done in several years.
June 11, 2007
7of-
1
•
14. 6.1.4. $8,500 Misc. & Contingency decreased. No new staff or office changes
are expected.
15. 6.2 Plan development — $10,000 Local assistance. The watershed plan should
be approved and the local communities have two years to update their plans and
make them consistent with the watershed plan. This is the peak of the assistance
need as identified on Table 6 -1 of the VLAWMO Water Plan
16. 6.2 Restore Reserves - $5000. This is the contingency fund for the water plan
authorized by the Board this year that would be restored to the depleted
VLAWMO reserves. VLAWMO should carry about one third to one half of its
budget in reserve — that is anywhere from $127,000 to $190,000 for the proposed
2008 budget.
17. 6.3.3 $7500 Sustainable Lake Plans anticipates the next lake plan as a cost share
with local match.
18. 6.3.4 $5000. Financial incentives (cost- share). The same as 2007 the first year
of the program.
19. 6.3.5 $12,000 Public Education. The Water Plan anticipates an increased
education program with consultants and a school component.
20. 6.3.6 $10,300 Facilities operation This is a 3% inflationary increase and is
consistent with the Water Plan.
21. 6.3.8 Data — $1500 Citizens Lake Monitoring Program — same at 2007.
22. 6.3.8.2 Data $5000 — Ramsey Co Lab. This was reduced from $8500 based on
2006 expenditures.
23. 6.3.8.2 Data & equipment: $2500 — Monitoring equipment. .
24. 6.3.8.4 Data $3000 Stormwater Utility fee annual maintenance of database.
This anticipates the fee. If it does not come to pass, this could be retained in the
data analysis and water quality monitoring and modeling budget area.
25. INCOME. 6.5.1 Service fees remain the same
26. 6.5.2 Interest is increased due to CD investment.
27. 6.5.3 WCA subgrant & misc. income — the same as 2007.
28. 6.5.4 This line item under Income assumes the majority of the operations and
project budget is coming from the current source — member contributions based
on the 40 -40 — 20 formula.
29. 6.5.5.1 Other Funding Sources: Stormwater Utility Fee. This budget assumes
the passage and implementation of the Stormwater Utility Fee. CIP projects may
also be funded through the SWU. For the first year it might be simpler to fund the
whole budget through this mechanism. The SWU may generate sufficient funds
to establish an Enterprise Fund through which CIP may be funded.
30. 6.5.5.2 Other Funding Sources: CIP levy. The water plan recommends CIP
funding to come from the taxes levied under State Statute 103B.251 (Capital
improvements by watershed management organizations). This is a proposed JPA
amendment that VLAWMO could use similar to Basset Creek WMC in Hennepin
County. Maintenance levies may be included in the future.