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HomeMy WebLinkAboutCC WORKSESSION 07312007Council /Staff Work Session July 31, 2007 Following Joint School Board Meeting St. Anthony Council Chambers 1. Call to Order. 2. Key Financial Strategies Presentation. Stacie Kvilvang, Ehlers & Associates, presenting. 3. 2008 Budget Presentation. Mike Mornson, City Manager & Roger Larson, Finance Director. 4. Adjournment. 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T •$.; E C O C L L LA v ru L a - .o n. w a 0 9 N c O Im �N D d J 4) o r. .0 4- s^ L oTj V .L •r. 0 U. p F 0 .� u 3 T: o v o L 4H -C > a, c fa -o a �v o � a > `o 4" O � CA 0 C) -p O cv u �- o O u 00 u C E r� �® •�4-J .^ o ��a, �u EL u c X v aui 0 +, -p c on 0�'v > •L .�.� > V �+ � � s 0 ■ ■ N C O N 41 3 �j Presentation Materials 2008 Operating Budget Proposed General Fund Budget & Levy MEMORANDUM DATE: July 18, 2007 TO: City Council FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: PROPOSED 2008 GENERAL OPERATING BUDGET City staff has submitted their budget requests for 2008. For your consideration and review, staff compiled the attached booklet includes the 2007 General Operating Budget, the Capital Equipment Budget. The following is a summation of the 2008 budget statistics that does not include any adjustments or changes to the levy based on Key Financial Planning: Issues that impact the 2008 budget: • Cost of living adjustment for city staff (negotiate - 3 union contracts). • Rising cost of health insurance premiums. • Increase in motor fuel costs; will affect all Departments. • Maintenance and repair costs continue to rise. • Police • Add additional $30,000 to overtime budget. • Phase -in the hiring of a full -time officer 2009. • Utility costs for city buildings continue to rise. • Capital Equipment needs (budgeted at $450,000) Other adjustments to operating budget: • Reclassification — Police, Fire and Public Works. o Motor Fuels. o Maintenance and repair costs. 24 hour Lauderdale Contract. Based on the Key Financial Management Plan discussion earlier in the evening, the Council has several other levy options available to them on the 2008 levy, Proposed 1) General Operating Budget $4,998,500 4.75% 2) General Fund Levy $2,796,900 3) General Levy Increase $ 136,100 5.12% 4) Road Improvement Levy $1,022,136 5) Road Levy Increase $ 136,302 15.39% Issues that impact the 2008 budget: • Cost of living adjustment for city staff (negotiate - 3 union contracts). • Rising cost of health insurance premiums. • Increase in motor fuel costs; will affect all Departments. • Maintenance and repair costs continue to rise. • Police • Add additional $30,000 to overtime budget. • Phase -in the hiring of a full -time officer 2009. • Utility costs for city buildings continue to rise. • Capital Equipment needs (budgeted at $450,000) Other adjustments to operating budget: • Reclassification — Police, Fire and Public Works. o Motor Fuels. o Maintenance and repair costs. 24 hour Lauderdale Contract. Based on the Key Financial Management Plan discussion earlier in the evening, the Council has several other levy options available to them on the 2008 levy, GENERAL FUND The General Fund accounts for resources devoted to financing general services. These include General Government, Police, Fire, Public Works and Parks. It is the largest budget and is the main operating fund of the City 2007 2008 Dollar Percentage Budget Budget Increase Increase $4,771,900 $4,998,600 $226,700 4.75 2007 2008 Dollar Percentage Levy Levy Increase Increase $2,660,800 $2,796,900 $136,100 5.12 07/01/07 IMPORTANT DATES St. Anthony Budget Schedule for 2008 Budget January 11 & 12 2007• Goal Setting, Financial Management and Planning. April 24, 2007: Public Hearing /Provide Residents with an Opportunity to have Input in the process. May 8 2007: Work Session — Staff & Council to review Capital Equipment. May - July: City Manager & Staff Meetings to discuss /draft 2008 Budget. July 31 2007: Work Session to Review Key Financial Management Plan and Proposed 2008 Operating Budget and Tax Levy. August 14, 2007: Council Meeting /Ehlers Presentation of Key Financial Management Plan. 1) Resolution approving the Pay -Off of Road Improvement Bonds 1997A, 1999A and 2003D. September 11 2007: Presentation of Proposed Budget/Property Tax Levy 1) Resolution passed setting Proposed 2008 Budget and Tax Levy. 2) Resolution passed setting Public Hearing and reconvening dates. November 29, 2007 " December 20, 2007: Dates established to hold a Truth -in- Taxation /Public Hearing. December 3 2007: Truth -in- Taxation, Public Hearing. Presentation of 2008 Operating Budget and Tax Levy. December 17 2007: Approval and Final Adoption of 2008 Operating Budget and (Subject to Change) Tax Levy. If the City doesn't need a Truth -in- Taxation hearing there is no requirement to change the council meeting dates. The 2008 Operating Budget and Levy would then be adopted on December 11, 2007. "Please note: The public hearing must be held between November 29th and December 20th. The first Monday in December is reserved for City Governments. If an alternate date is selected, the initial cannot be held on the same day as Hennepin or Ramsey Counties Initial Hearing Dates, I.S.D. #282 Initial Hearing Date or Metro Special Taxing Districts Initial Hearing Date. GENERALFUND REVENUES Property Tax - Levy Penalties, Interest, Tax Forfeitures PERA Levy (Rate Increase) Licenses Permits Dare /School District #282 Levy Fire Relief Association - 2% Insurance /Pension Intergovernmental Revenue Contract Revenue (Lauderdale /Falcon Heights Charges for Service (Fines) Miscellaneous Revenues Transfers & Miscellaneous Revenues GENERAL FUND TOTAL REVENUES EXPENDITURES Mayor / City Council Public /Intergovernmental Relations Cable Franchise General Management Elections Finance, Insurance / Accounting Finance, Assessing Legal Engineering, Planning / Zoning City Building Civil Defense /Emergency Management Police Protection Lauderdale /Falcon Heights Contracts Dare Education Fire Protection Fire Relief Association - 2% Insurance /Pension Inspections, Building /Plumbing /Heating /Health Animal Control Public Works Public Works, Maintenance /Repair Equipment Tree and Weed Care Parks Community Services - Grandfather Levy GENERAL FUND TOTAL EXPENDITURES 2007 2008 BUDGET BUDGET 5.12% $136,100 Increase in General Fund Levy $2,660,800 $2,796,900 5.12% $3,000 $3,000 0.00% $7,500 $7,500 0.00% $43,850 $42,100 -3.99% $150,800 $165,400 9.68% $14,500 $14,500 0.00% $50,000 $52,500 5.00% $225,100 $220,100 -2.22% 24 Hour Service /Lauderdale $1,039,000 $1,096,200 5.51% $92,500 $98,500 6.49% $144,350 $149,400 3.50% $340,500 $352,500 3.52% $69,800 Added For Maintainance /Fuel $24,500 Added For Maintainance/ Fuel $94,300 Moved To Police & Fire $4,771,900 4 998 600 4.75% 2007 2008 BUDGET BUDGET 5.12% $58,200 $61,300 5.33% $25,100 $26,400 5.18% $25,600 $26,900 5.08% $92,600 $97,500 5.29% $30,900 $32,500 5.18% $258,400 $271,500 5.07% $47,500 $49,900 5.05% $96,300 $101,200 5.09% $3,100 $3,300 6.45% $161,800 $174,600 7.91% $52,100 $54,900 5.37% $1,288,300 $1,427,300 10.79% $919,600 $942,600 2.50% $14,500 $14,500 0.00% $668,200 $728,500 9.02% $50,000 $52,500 5.00% $86,700 $91,100 5.07% $4,400 $4,600 4.55% $480,000 $504,500 5.10% $152,700 $66,600 - 56.39% $34,200 $36,000 5.26% $169,500 $178,200 5.13% $52,200 $52,200 0.00% $4,771,900 4 998 600 4.75% Increase General Fund Levy $136,100 5.12% Road Levy $136,303 15.39% Certificate - Fire Truck ($91,500) - 100.00% Lease Revenue Bonds $525 0.13% Tax Abatement - Central Park iEffi -2.69% $180,662 4.38% CAPITAL EQUIPMENT - 2008 Budget Capital Equipment Revenues: Appropriation from Reserves Liquor Operations Profits ................................................. ............................... .......................$200,000 MSARevolving Funds ..................................................... ............................... .......................$150,000 Water Filtration Interest Earnings ..................................... ............................... ........................$50,000 Fund Balance /Sweeper Funds Reallocated ............................................ ............................... $50,000 Total Revenues .............. ............................... ....................... $450,000 Capital Equipment Expenditures: Police: Two Squad Cars .......................... ............................... Tear Down & Build New Squads... ........................... _ Equipment Replacement/Squad Cars ....................... CrimeNet/State Computers Upgrades ....................... PoliceBikes ................................ ............................... Record Management System Upgrade ..................... MP5's - Firearms ........................ ............................... Radar Replacement .................... ............................... CSO- Vehicle ............................. ............................... Defibrillator ___...._. Fire: ................. ............................... $50,000 ................. ..............................$ 5,000 ................... ..............................$ 5,500 ................... .................I............$ 8,000 .................. ..............................$ 3,000 ............I ........... ........................ $10.000 ................. ..............................$ 5,000 .................. ..............................$ 4,000 ......... ............................... $30,000 ................................................................... .........................I..... 0,v00 TotalPolice ..................... ............................... .......................$123,500 TurnoutGear ................................................................................. ..............................$ 7,500 Pagers... ............................. ........................................................ ................... .. ... . $ 1,600 HoseReplacement ........................................................................ ..............................$ 1,500 Computers/ Printers ....................................................................... ..............................$ 1,500 AudioVisual Equipment ................................................................ ..............................$ 2,500 Fans / Blowers ................................................................................. ..............................$ 1,500 GasMonitor ................................................................................... ..............................$ 2,000 Copier........................................................................................... ............................... $12,00 0 TotalFire .............. ............................... ........................$30,100 Public Works - Equipment: 2 — Ton Plow Truck ................................................................... ............................... $ 37,000 EmergencyGenerator ............................................................... ............................... $ 20,000 High Ranger & Chipper Box ................................ ............................... .......................$135,000 Locator& Water Testing Equipment ........................................... ..............................$ 4,000 UpdateWell Pump & Controls ..................................................... ..............................$ 23,200 Park Playground Equipment ........................................................ ..............................$ 20,000 Refurbish Ball Fields / Maintenance .............................................. ............................... 5,000 Total Public Works ............................ .......................$244,200 Finance /Administration: Replacement of Personal Computers ( 3) ........................................ ............................... $ 5,000 HIP Laser Jet Color Printers ........................................................... ............................... $ 3,500 P/C Software Upgrades ................................................................... ..............................$ 3,500 Cisco Ethernet Switch/Transceiver Upgrades ................................. ..............................$ 6,700 File Server& Software Upgrades .................................................... ..............................$ 8,500 City Council & A/V Improvements .................................................. ............................... $25,00 0 Total Finance /Administration ............ ........................$52,200 Total Expenditures .......... ............................... .......................$450,000 A m m N O N No c g > 0 m CL o� m oN ° v ' Qr = o m 0 rD m nn m d N ° J _ O m O N CD 3 0 N 2 5 596 O N N C m W m N c m CD c n n n,Z 3 p p .0 m N CO O N x p N m N W N m =m, S J N av X N_m0) 3 j. 3 = Dmi Pi ° A A fD is Pi CD O A W c W OD �(D Vw 3 tA0 0 0 CD v--I S r 0 m m r R1X °c 03 m O o > > CD fD < .Z1 a) ;o O ID m `°3o (Do0w n M ;�cDm 3M O o ofDimmm0m m� m am CY r- a m C) m -1 m 7 N N ma O N , T O ry M. N O O v A N AV V(cnliA N10O (n V Ut V7 0 W I O O' V 0 0 0 -40 O O O Co, V O V O O O O O V O o �cc D 0 10O NCD w w O0)O (T ONO m 0000 w O O O O O 0 0 m = 0 i A O N O O O CT 01 W O Q 1 O� O W OD 00 0 W 0IDN 0 0 0 0 0 0 0 0 N A " CD N Pi (A cWD tD 000 CD O W V 0 OI W (r O O 0 m O m OD co O mV OD 0 w 0 0 D O W O V C. O O N O W O O O O O V O O O O O O O D O A N AV V(cnliA N10O (n V Ut V7 0 W I O O' V 0 0 0 -40 O O O Co, V O V O O O O O V O o �cc D 0 10O NCD w w O0)O (T ONO m 0000 w O O O O O 0 0 m = 0 i A O N O O O CT 01 W O Q 1 O� O W OD 00 0 W 0IDN 0 0 0 0 0 0 0 0 Levy Option's based on Key Financial Management Plan Option #1 Maintain Current Fund Balance Policy 30% — 35% Based on Proposed 2008 Operating Budget General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #2 Increase Fund Balance to 35% Adds: $147,000 to General Fund Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #3 Increase 2007 2008 Decrease 2,660,800.00 2,796,900.00 136,100.00 5.12% 885,833.78 1,022,136.77 136,302.99 15.39% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 55,500.00 0.00 0.00% 28,506.00 27,740.00 (766.00) -2.69% 7.500.00 7,500.00 0.00 0.00% 4,123,531.78 4,304,193.77 180,661.99 4.38% Increase Fund Balance to 35% Adds: $147,000 to General Fund Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #3 Maintain Current Fund Balance Policy 30% — 35% Add: $25,000 to General Fund Levy for Salo Park Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Increase 2007 2008 (Decrease) 2,660,800.00 2,943,900.00 283,100.00 10.64% 885, 833.78 1,022,136.77 136, 302.99 15.39% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 55,500.00 0.00 0.00% 28,506.00 27,740.00 (766.00) -2.69% 7.500.00 7.500.00 0.00 0.00% 4,123,531.78 4,451,193.77 327,661.99 7.95% Maintain Current Fund Balance Policy 30% — 35% Add: $25,000 to General Fund Levy for Salo Park Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Increase 2007 2008 (Decrease) 2,660,800.00 2,821,900.00 161,100.00 6.05% 885,833.78 897,136.77 11,302.99 1.28% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 55,500.00 0.00 0.00% 28,506.00 27,740.00 (766.00) - 2.69% 7.500.00 7,500.00 0.00 0.00% 4,123,531.78 4,204,193.77 80,661.99 1.96% Option #4 Increase Fund Balance to 35% Add: $147,000 to General Fund Levy Add: $25,000 to General Fund Levy for Salo Park Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #5 Maintain Current Fund Balance Policy 30% - 35% Add: $25,000 to General Fund Levy for Salo Park Add: $30,000 to HRA Levy Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #6 Increase 2007 2008 (Decrease) 2,660,800.00 2,968,900.00 308,100.00 11.58% 885,833.78 897,136.77 11,302.99 1.28% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 55,500.00 0.00 0.00% 28,506.00 27,740.00 (766.00) -2.69% 7.500.00 7.500.00 0.00 0.00% 4,123,531.78 4,351,193.77 227,661.99 5.52% Maintain Current Fund Balance Policy 30% - 35% Add: $25,000 to General Fund Levy for Salo Park Add: $30,000 to HRA Levy Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Option #6 Increase Fund Balance to 35% Add: $147,000 to General Fund Levy Add: $25,000 to General Fund Levy for Salo Park Add: $30,000 to HRA Levy Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Increase 2007 2008 (Decrease) 2,660,800.00 2,821,900.00 161,100.00 6.05% 885,833.78 897,136.77 11,302.99 1.28% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 85,500.00 30,000.00 54.05% 28,506.00 27,740.00 (766.00) -2.69% 7.500.00 7.500.00 0.00 0.00% 4,123,531.78 4,234,193.77 110,661.99 2.68% Increase Fund Balance to 35% Add: $147,000 to General Fund Levy Add: $25,000 to General Fund Levy for Salo Park Add: $30,000 to HRA Levy Less: $125,000 from Road Levy General Fund Levy Road Improvement Levy Certificate of Indebtedness Lease Revenue Bonds P/W - Fire HRA Levy Tax Abatement Levy — Central Park PERA Rate Increase Truth in Taxation — Limit for Conducting a Hearing = $4,242,359.15 (Last Years Levy, Less HRA Levy = $4,068,031.78 X 1.042853) HRA Maximum Levy = $120,635 Increase 2007 2008 (Decrease) 2,660,800.00 2,968,900.00 308,100.00 11.58% 885,833.78 897,136.77 11,302.99 1.28% 91,500.00 0.00 (91,500.00) - 100.00% 393,892.00 394,417.00 525.00 0.13% 55,500.00 85,500.00 30,000.00 54.05% 28,506.00 27,740.00 (766.00) -2.69% 7.500.00 7.500.00 0.00 0.00% 4,123,531.78 4,381,193.77 257,661.99 6.25% Truth in Taxation — Limit for Conducting a Hearing = $4,242,359.15 (Last Years Levy, Less HRA Levy = $4,068,031.78 X 1.042853) HRA Maximum Levy = $120,635