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Home My WebLink About2.c. 2009 Budget Update / 2010 Budget DiscussionAGENDA ITEM: 2009 Budget Update 2010 Budget Discussion AGENDA SECTION: Discussion PREPARED BY: Dwight Johnson, City Administrator Jeff May, Finance Director AGENDA NO. 2 ATTACHMENTS: 2010 Budget Scenarios Worksheet, Proposed Performance Measures List, Proposed Budget Schedule, March Estimated Cash Flow Chart Worksheet APPROVED BY: ON RECOMMENDED ACTION: Discussion only. 4 ROSEMOUNT CITY COUNCIL City Council Work Session: April 15, 2009 EXECUTIVE SUMMARY ISSUE The issue before the City Council is the update of the 2009 budget (as of 3/31/09) and the discussion of the upcoming budget for 2010. BACKGROUND The City Council has requested an update on the 2009 General Fund budget through the end of March. It is difficult to have a true handle on all of the revenues and expenditures because of the cyclical nature of many of the revenues coming in and the expenditures going out. We can't just look at a quarter of the year being done so a corresponding quarter of the revenues and expenditures having taken place. On the revenue side the building revenues actually look fairly good right now. We have taken in 16.77% of our budgeted amount for licenses and permits so far. Typically the first quarter of the year is the slowest time for permit revenues so we are in pretty good shape in this area. The other big item that has been talked about in the press is investment earnings We have received 31.12% of our budgeted amount in earnings through the end of March. Interest rates right now are poor to say the least but we have money invested at previous rates that, even if called, should allow us to reach our budgeted amount. On the expenditure side all the departments are in the 15% to 25% range in year -to -date spending. We are guardedly optimistic that our conservative budgeting on both the revenue and expenditure side will allow us to make it through this year in good shape. We did factor in the loss of the Market Value Homestead Credit during the budget process last year so that gives us an advantage that many cities are currently having to deal with we will not have to. We am currently beginning work on the 2010 budget worksheets. Attached is a worksheet with three possible budget levy scenarios for 2010. This is based on valuation information that we have received from the County. The information makes general assumptions on certain parts of the equation that we do not currently have such as the fiscal disparity contribution and the tax increment captured tax capacity (these numbers will actually not be available until the end of July or the beginning of August). The three scenarios are by no means the only options available but the starting point for discussion. The first scenario looks at trying to maintain our current tax rate, the second scenario looks at a zero dollar increase in our total levy from 2009 to 2010, and the third scenario looks at what it would take to maintain a zero dollar increase in the City's share of the actual tax bill on a median valued home (taking into account the decrease in value from 2009 to 2010). One positive factor that we will be able to utilize in the budget process is the fact that in March of this year we were able to reallocate excess General Fund reserves to three debt service funds to help reduce our future levies. If you recall we will be able to reduce our future levies by $526,931 for 2010, $179,033 for 2011 and $93,311 for 2012. We should be able to plug in these levy numbers into any of the three possible scenarios to consider the full impact. There are other factors that must be considered before proceeding in the budget process including salary and benefit increases, the possible impact of amenity additions (St. Joseph's, UMore ball fields, DCTC soccer fields, etc.), and general service levels. The contracts for all four of our bargaining units expire at the end of this year. Emmy has been tracking contract settlements that were in place for 2010 before this year and other contracts that have been settled recently. This will have a significant impact on the budgeting efforts for all departments so we need to come up with some figure to use for budgeting purposes. The impact of amenities on the operating side of the budget will actually be discussed later this evening (in regards to St. Joseph's). There is a definite impact that cannot be ignored though and that must be factored into the budget discussion. General service levels have been maintained the last few years and it is staff's hope that we will be able to develop a budget and levy that will continue that practice. Staff believes that the middle scenario, which holds the overall levy the same and reduces taxes for the typical home by $45 per year, is reasonably achievable without any significant reductions in service. Finally, in response to trying to measure those service levels, the Council has requested that we make attempts to measure our performance wherever practical. Dwight and I have met with all of the departments and attached for your review and discussion is a proposed list of performance measures that will be incorporated into the budget process. SUMMARY After discussion this evening, staff will begin working on the budget following the attached proposed budget schedule. 2 Overall 2009 tax levy is $10,240,221 a 'Notes: Median home value is reduced by 9.02% for payable 2010 c I Change in taxes on median home 1Change in overall levy amount c 'Tax rate change 1 $1009 reduced to $903 1 617,221 0 No change in City tax rate 1 $1009 reduced to 964 0 6.47% No change in City tax levy Stays at $1009 I i 459,779 11.30% No change in City taxes paid on median home PROPOSED LIST OF PERFORMANCE MEASURES FOR CITY DEPARTMENTS Administration Worker's Compensation Modification Factor Number of registered voters per precinct Turnover rate of City personnel Average number of unique views on City website per month Police Finance Number of citizens /neighborhoods participating with crime prevention programs Number of personal injury accidents per 1000 population Sworn FTE (full time equivalents) per 1000 population Civilian FTE per 1000 population Average response time to top priority calls and change from prior fiscal year Average percentage of officer time responding to external calls DWI arrests per 1000 population and change from prior fiscal year Part I crimes per 1000 residents and change from prior fiscal year Part II crimes per 1000 residents and change from prior fiscal year Percentage of crimes cleared Number of invoices processed City bond rating GFOA Certificate of Achievement Award received Number of utility bills processed per utility billing clerk Information Technology (TBD) Public Works/Engineering Value of projects ordered and change from prior fiscal year Average pavement rating of residential streets Average pavement rating of collector streets Average number of hours for full snow clearing event Number of sumps cleaned Percentage of sanitary sewer system cleaned Percentage of time mechanics utilized for repair and maintenance Number of park acres maintained Parks and Recreation Percentage of available time Community Center facilities are utilized Total Community Center rental income and change from prior fiscal year Number of acres in the park system and change from prior fiscal year Number of ice arena hours utilized Total number of recreation program participants Percentage of costs received for all recreation programs Community Development Percentage of planning applications processed within 60 days Percentage of requested inspections completed within one day (95% goal) Percent of plan reviews fully completed within 10 working days Percent of code complaints resolved Number of existing businesses visited Fire BUDGET SCHEDULE April 6 Begin setting up budget worksheets April 15 City Council Work Session Discuss budget process Direction to staff April 20 Begin working on salary benefit projections May 4 Give staff worksheets to complete first draft May 26 First draft due to Finance Director May 27 Compile 1 draft of budget in total June 8 June 20 Meet with staff and make adjustments to 1 draft June 26 City Council sees draft copy of budget July 14 City Council Work Session discussion on budget July 20 Make any changes to draft budget August 12 City Council Work Session discussion on budget August 19 City Council Work Session Last chance before preliminary levy September 1 City Council Meeting Approve preliminary levy September 14 Certify preliminary levy hearing dates to County before 9/15 October 14 City Council Work Session Prepare for Budget Hearing November 11 City Council Work Session Final preparations for Budget Hearing December 7 Budget Hearing December 8 City Council Meeting Approve budgets and levies December 22 Certify final levy to County between 12/20 12/31 December 22 Mail required reports to State P.M iiP7x16 PO P.1e.18,0..§$ 8B$.§ 8e 8 PPS .PgPPPPg041. sgg58ygQ§Sg$,$ PM0 SR.S80'331370 8 e.18g�.§.S N2gs138Be.Q88t$ !e 8e8 Q PP PPpAg S8� eB�.�8BL►3.9 Y_8 g g -M< 6=OP3 R,B�akggfIgsB3B YS 1VTA 'was a Pt PP?B §gRPP PPPLP 8sd.�8gg8.3sg$s i5L7o0lI 00 a e0V31 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